10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-15185

First Horizon National Corporation

(Exact name of registrant as specified in its charter)

TN	62-0803242
(State or other jurisdiction incorporation of organization)	(IRS Employer Identification No.)
165 MADISON AVENUE MEMPHIS, TENNESSEE	38103
(Address of principal executive office)	(Zip Code)

(Registrant’s telephone number, including area code) (901) 523-4444

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☒  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if a smaller reporting company)	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding on September 30, 2016
Common Stock, $.625 par value	233,234,592

Table of Contents

FIRST HORIZON NATIONAL CORPORATION

INDEX

Part I. Financial Information		3
	Item 1. Financial Statements	3
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	74
	Item 3. Quantitative and Qualitative Disclosures about Market Risk	118
	Item 4. Controls and Procedures	118
Part II. Other Information		119
	Item 1. Legal Proceedings	119
	Item 1A. Risk Factors	119
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	119
	Item 3. Defaults Upon Senior Securities	119
	Item 4. Mine Safety Disclosures	119
	Item 5. Other Information	119
	Item 6. Exhibits	120
Signatures		121
Exhibit Index		122
	Exhibit 10.1
	Exhibit 31(a)
	Exhibit 31(b)
	Exhibit 32(a)
	Exhibit 32(b)

2

PART I.

FINANCIAL INFORMATION

Item 1. Financial Statements
	The Consolidated Condensed Statements of Condition (unaudited)	4
	The Consolidated Condensed Statements of Income (unaudited)	5
	The Consolidated Condensed Statements of Comprehensive Income/(loss) (unaudited)	6
	The Consolidated Condensed Statements of Equity (unaudited)	7
	The Consolidated Condensed Statements of Cash Flows (unaudited)	8
	The Notes to the Consolidated Condensed Financial Statements (unaudited)	9
	Note 1 Financial Information	9
	Note 2 Acquisitions and Divestitures	13
	Note 3 Investment Securities	14
	Note 4 Loans	17
	Note 5 Allowance for Loan Losses	27
	Note 6 Intangible Assets	29
	Note 7 Other Income and Other Expense	30
	Note 8 Components of Other Comprehensive Income/(loss)	31
	Note 9 Earnings Per Share	33
	Note 10 Contingencies and Other Disclosures	34
	Note 11 Pension, Savings, and Other Employee Benefits	41
	Note 12 Business Segment Information	43
	Note 13 Variable Interest Entities	45
	Note 14 Derivatives	50
	Note 15 Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing and Lending Transactions	56
	Note 16 Fair Value of Assets & Liabilities	58

This financial information reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial condition and results of operations for the interim periods presented.

3

CONSOLIDATED CONDENSED STATEMENTS OF CONDITION

	First Horizon National Corporation
	(Unaudited)
	September 30						December 31
(Dollars in thousands, except per share amounts)	2016			2015			2015
Assets:
Cash and due from banks	$	327,639		$	256,342		$	300,811
Federal funds sold		27,097			64,438			114,479
Securities purchased under agreements to resell (Note 15)		802,815			793,098			615,773
Total cash and cash equivalents		1,157,551			1,113,878			1,031,063
Interest-bearing cash		219,834			596,689			602,836
Trading securities		1,320,535			1,229,180			881,450
Loans held-for-sale (a)		155,215			124,308			126,342
Securities available-for-sale (Note 3)		4,027,594			3,673,641			3,929,846
Securities held-to-maturity (Note 3)		14,340			4,313			14,320
Loans, net of unearned income (Note 4) (b)		19,555,787			16,725,492			17,686,502
Less: Allowance for loan losses (Note 5)		201,557			210,814			210,242
Total net loans		19,354,230			16,514,678			17,476,260
Goodwill (Note 6)		191,371			145,932			191,307
Other intangible assets, net (Note 6)		22,317			25,624			26,215
Fixed income receivables		91,997			83,547			63,660
Premises and equipment, net (September 30, 2016 includes $7.8 million classified as held-for-sale)		279,178			269,332			275,619
Real estate acquired by foreclosure (c)		18,945			35,332			33,063
Derivative assets (Note 14)		160,736			152,548			104,365
Other assets		1,435,379			1,417,071			1,436,291
Total assets	$	28,449,222		$	25,386,073		$	26,192,637
Liabilities and equity:
Deposits:
Savings	$	8,753,115		$	7,554,338		$	7,811,191
Time deposits		732,561			743,158			788,487
Other interest-bearing deposits		5,605,734			4,885,601			5,388,526
Certificates of deposit $100,000 and more		592,518			290,738			443,389
Interest-bearing		15,683,928			13,473,835			14,431,593
Noninterest-bearing		5,890,252			5,391,385			5,535,885
Total deposits		21,574,180			18,865,220			19,967,478
Federal funds purchased		538,284			520,992			464,166
Securities sold under agreements to repurchase (Note 15)		341,998			332,329			338,133
Trading liabilities		702,226			788,563			566,019
Other short-term borrowings		792,736			99,887			137,861
Term borrowings		1,065,651			1,339,940			1,312,677
Fixed income payables		68,897			95,346			23,072
Derivative liabilities (Note 14)		144,829			140,965			108,339
Other liabilities		475,839			622,586			635,306
Total liabilities		25,704,640			22,805,828			23,553,051
Equity:
First Horizon National Corporation Shareholders’ Equity:
Preferred stock - Series A, non-cumulative perpetual, no par value, liquidation preference of $100,000 per share - (shares authorized - 1,000; shares issued - 1,000 on September 30, 2016, September 30, 2015, and December 31, 2015)		95,624			95,624			95,624
Common stock - $.625 par value (shares authorized - 400,000,000; shares issued - 233,234,592 on September 30, 2016; 234,237,439 on September 30, 2015; and 238,586,637 on December 31, 2015)		145,772			146,398			149,117
Capital surplus		1,376,319			1,377,731			1,439,303
Undivided profits		992,264			841,737			874,303
Accumulated other comprehensive loss, net (Note 8)		(160,828	)		(176,676	)		(214,192	)
Total First Horizon National Corporation Shareholders’ Equity		2,449,151			2,284,814			2,344,155
Noncontrolling interest		295,431			295,431			295,431
Total equity		2,744,582			2,580,245			2,639,586
Total liabilities and equity	$	28,449,222		$	25,386,073		$	26,192,637

Certain previously reported amounts have been revised to reflect the retroactive effect of the adoption of ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” See Note 1 - Financial Information for additional information.

See accompanying notes to consolidated condensed financial statements.

(a) September 30, 2016 and 2015 and December 31, 2015 include $17.2 million, $21.7 million and $22.4 million, respectively, of held-for-sale consumer mortgage loans secured by residential real estate in process of foreclosure.

(b) September 30, 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in process of foreclosure.

(c) September 30, 2016 and 2015 and December 31, 2015 include $9.7 million, $15.6 million and $14.6 million, respectively, of foreclosed residential real estate.

4

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

	First Horizon National Corporation
	Three Months Ended						Nine Months Ended
	September 30						September 30
(Dollars and shares in thousands except per share data, unless otherwise noted) (Unaudited)	2016			2015			2016			2015
Interest income:
Interest and fees on loans	$	174,039		$	150,555		$	495,516		$	447,735
Interest on investment securities available-for-sale		23,655			23,233			72,082			69,355
Interest on investment securities held-to-maturity		197			66			592			198
Interest on loans held-for-sale		1,445			1,311			3,904			4,152
Interest on trading securities		6,793			8,056			22,564			26,108
Interest on other earning assets		843			466			3,354			1,237
Total interest income		206,972			183,687			598,012			548,785
Interest expense:
Interest on deposits:
Savings		4,939			2,785			13,275			9,062
Time deposits		1,117			1,230			3,377			3,986
Other interest-bearing deposits		2,592			1,118			7,422			3,179
Certificates of deposit $100,000 and more		1,379			756			3,916			2,468
Interest on trading liabilities		3,331			4,258			11,152			11,942
Interest on short-term borrowings		1,254			664			3,585			2,436
Interest on term borrowings		7,165			9,314			21,752			28,644
Total interest expense		21,777			20,125			64,479			61,717
Net interest income		185,195			163,562			533,533			487,068
Provision for loan losses		4,000			1,000			11,000			8,000
Net interest income after provision for loan losses		181,195			162,562			522,533			479,068
Noninterest income:
Fixed income		71,748			51,804			216,638			169,664
Deposit transactions and cash management		27,221			28,911			81,049			83,892
Brokerage, management fees and commissions		10,828			11,620			31,908			35,475
Trust services and investment management		6,885			6,590			20,674			20,704
Bankcard income		6,260			5,561			18,077			16,631
Bank-owned life insurance		3,997			4,135			11,129			10,988
Other service charges		3,004			2,968			8,713			8,859
Insurance commissions		1,262			608			2,301			1,858
Equity securities gains/(losses), net (Note 3)		(200	)		(345	)		(181	)		(61	)
Debt securities gains/(losses), net (Note 3)		—			—			1,654			—
All other income and commissions (Note 7)		17,540			13,251			36,402			37,083
Total noninterest income		148,545			125,103			428,364			385,093
Adjusted gross income after provision for loan losses		329,740			287,665			950,897			864,161
Noninterest expense:
Employee compensation, incentives, and benefits		145,103			116,219			425,624			375,633
Occupancy		12,722			13,282			38,062			37,264
Operations services		10,518			10,130			30,939			29,500
Computer software		10,400			11,010			33,213			33,292
Equipment rentals, depreciation, and maintenance		6,085			7,093			19,426			22,296
Advertising and public relations		6,065			4,832			15,519			13,914
FDIC premium expense		5,721			4,529			15,490			12,929
Professional fees		4,859			5,139			14,342			14,063
Legal fees		4,750			3,626			15,520			11,686
Communications and courier		3,883			4,054			10,672			11,731
Other insurance and taxes		2,625			3,283			8,952			10,067
Contract employment and outsourcing		2,443			3,414			7,365			11,335
Amortization of intangible assets		1,299			1,298			3,898			3,894
Foreclosed real estate		815			431			125			1,629
Repurchase and foreclosure provision		(218	)		—			(31,618	)		—
All other expense (Note 7)		16,488			27,096			79,778			220,818
Total noninterest expense		233,558			215,436			687,307			810,051
Income/(loss) before income taxes		96,182			72,229			263,590			54,110
Provision/(benefit) for income taxes		28,547			8,897			82,802			8,226
Net income/(loss)	$	67,635		$	63,332		$	180,788		$	45,884
Net income attributable to noncontrolling interest		2,883			2,977			8,586			8,586
Net income/(loss) attributable to controlling interest	$	64,752		$	60,355		$	172,202		$	37,298
Preferred stock dividends		1,550			1,550			4,650			4,650
Net income/(loss) available to common shareholders	$	63,202		$	58,805		$	167,552		$	32,648
Basic earnings/(loss) per share (Note 9)	$	0.27		$	0.25		$	0.72		$	0.14
Diluted earnings/(loss) per share (Note 9)	$	0.27		$	0.25		$	0.71		$	0.14
Weighted average common shares (Note 9)		231,856			233,111			232,690			232,910
Diluted average common shares (Note 9)		234,092			235,058			234,775			234,838
Cash dividends declared per common share	$	0.07		$	0.06		$	0.21		$	0.18

Certain previously reported amounts have been reclassified to agree with current presentation.

See accompanying notes to consolidated condensed financial statements.

5

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

	First Horizon National Corporation
	Three Months Ended						Nine Months Ended
	September 30						September 30
(Dollars in thousands) (Unaudited)	2016			2015			2016		2015
Net income/(loss)	$	67,635		$	63,332		$	180,788	$	45,884
Other comprehensive income/(loss), net of tax:
Net unrealized gains/(losses) on securities available-for-sale		(7,887	)		15,427			47,310		13,331
Net unrealized gains/(losses) on cash flow hedges		(1,570	)		—			3,121		—
Net unrealized gains/(losses) on pension and other postretirement plans		963			(3,855	)		2,933		(1,761	)
Other comprehensive income/(loss)		(8,494	)		11,572			53,364		11,570
Comprehensive income/(loss)		59,141			74,904			234,152		57,454
Comprehensive income attributable to noncontrolling interest		2,883			2,977			8,586		8,586
Comprehensive income/(loss) attributable to controlling interest	$	56,258		$	71,927		$	225,566	$	48,868
Income tax expense/(benefit) of items included in Other comprehensive income/(loss):
Net unrealized gains/(losses) on securities available-for-sale	$	(4,902	)	$	9,548		$	29,402	$	8,228
Net unrealized gains/(losses) on cash flow hedges		(975	)		—			1,940		—
Net unrealized gains/(losses) on pension and other postretirement plans		598			(2,411	)		1,823		(1,093	)

See accompanying notes to consolidated condensed financial statements.

6

CONSOLIDATED CONDENSED STATEMENTS OF EQUITY

	First Horizon National Corporation
	2016									2015
(Dollars in thousands except per share data) (Unaudited)	Controlling Interest			Noncontrolling Interest			Total			Controlling Interest			Noncontrolling Interest			Total
Balance, January 1	$	2,344,155		$	295,431		$	2,639,586		$	2,286,159		$	295,431		$	2,581,590
Net income/(loss)		172,202			8,586			180,788			37,298			8,586			45,884
Other comprehensive income/(loss) (a)		53,364			—			53,364			11,570			—			11,570
Comprehensive income/(loss)		225,566			8,586			234,152			48,868			8,586			57,454
Cash dividends declared:
Preferred stock ($4,650 per share for the nine months ended September 30, 2016 and 2015, respectively)		(4,650	)		—			(4,650	)		(4,650	)		—			(4,650	)
Common stock ($.21 and $.18 per share for the nine months ended September 30, 2016 and 2015, respectively)		(49,578	)		—			(49,578	)		(42,496	)		—			(42,496	)
Common stock repurchased (b)		(96,801	)		—			(96,801	)		(20,052	)		—			(20,052	)
Common stock issued for:
Stock options and restricted stock - equity awards		18,710			—			18,710			6,577			—			6,577
Stock-based compensation expense		12,378			—			12,378			9,952			—			9,952
Dividends declared - noncontrolling interest of subsidiary preferred stock		—			(8,586	)		(8,586	)		—			(8,586	)		(8,586	)
Tax benefit/(benefit reversal) - stock based compensation expense		(629	)		—			(629	)		456			—			456
Balance, September 30	$	2,449,151		$	295,431		$	2,744,582		$	2,284,814		$	295,431		$	2,580,245

See accompanying notes to consolidated condensed financial statements.

(a) Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

(b) 2016 and 2015 include $93.5 million and $15.8 million, respectively, repurchased under share repurchase programs.

7

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

	First Horizon National Corporation
	Nine Months Ended September 30
(Dollars in thousands) (Unaudited)	2016			2015
Operating Activities
Net income/(loss)	$	180,788		$	45,884
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities:
Provision for loan losses		11,000			8,000
Provision/(benefit) for deferred income taxes		68,100			19,002
Depreciation and amortization of premises and equipment		24,032			27,187
Amortization of intangible assets		3,898			3,894
Net other amortization and accretion		19,536			11,774
Net (increase)/decrease in derivatives		1,330			(5,854	)
Repurchase and foreclosure provision		(31,618	)		—
Fair value adjustment to foreclosed real estate		1,561			2,366
Litigation and regulatory matters		25,285			10,943
Stock-based compensation expense		12,378			9,952
(Tax benefit)/benefit reversal - stock based compensation expense		629			(456	)
Equity securities (gains)/losses, net		181			61
Debt securities (gains)/losses, net		(1,654	)		—
Gain on extinguishment of debt		—			(5,794	)
Net (gains)/losses on sale/disposal of fixed assets		2,519			(2,461	)
Loans held-for-sale:
Purchases		(73,404	)		(3,080	)
Gross proceeds from settlements and sales		43,653			20,387
(Gain)/loss due to fair value adjustments and other		878			(330	)
Qualified pension plan contribution		(165,000	)		—
Net (increase)/decrease in:
Trading securities		(441,205	)		(36,200	)
Fixed income receivables		(28,337	)		(41,059	)
Interest receivable		(2,014	)		1,345
Other assets		(69,855	)		(88,908	)
Net increase/(decrease) in:
Trading liabilities		136,207			194,249
Fixed income payables		45,825			77,189
Interest payable		505			1,363
Other liabilities		(24,795	)		(36,823	)
Total adjustments		(440,365	)		166,747
Net cash provided/(used) by operating activities		(259,577	)		212,631
Investing Activities
Available-for-sale securities:
Sales		1,543			284
Maturities		526,112			506,537
Purchases		(557,216	)		(609,511	)
Premises and equipment:
Sales		9,636			40,369
Purchases		(41,304	)		(24,945	)
Net (increase)/decrease in:
Loans (a)		(1,874,562	)		(517,622	)
Interests retained from securitizations classified as trading securities		2,120			1,411
Interest-bearing cash		383,002			1,025,278
Net cash provided/(used) by investing activities		(1,550,669	)		421,801
Financing Activities
Common stock:
Stock options exercised		18,710			6,860
Cash dividends paid		(47,144	)		(39,978	)
Repurchase of shares (b)		(96,801	)		(20,052	)
Tax benefit/(benefit reversal) - stock based compensation expense		(629	)		456
Cash dividends paid - preferred stock - noncontrolling interest		(8,523	)		(8,555	)
Cash dividends paid - Series A preferred stock		(4,650	)		(4,650	)
Term borrowings:
Issuance		100			—
Payments/maturities		(264,599	)		(519,545	)
Net increase/(decrease) in:
Deposits		1,607,412			796,781
Short-term borrowings		732,858			(803,276	)
Net cash provided/(used) by financing activities		1,936,734			(591,959	)
Net increase/(decrease) in cash and cash equivalents		126,488			42,473
Cash and cash equivalents at beginning of period		1,031,063			1,071,405
Cash and cash equivalents at end of period	$	1,157,551		$	1,113,878
Supplemental Disclosures
Total interest paid	$	63,337		$	59,609
Total taxes paid		11,580			14,896
Total taxes refunded		3,854			7,012
Transfer from loans to other real estate owned		7,291			9,772

Certain previously reported amounts have been reclassified to agree with current presentation.

See accompanying notes to consolidated condensed financial statements.

(a) 2016 includes $537.4 million UPB of loans acquired from GE Capital.

(b) 2016 and 2015 include $93.5 million and $15.8 million, respectively, repurchased under share repurchase programs.

8

Notes to the Consolidated Condensed Financial Statements (Unaudited)

Note 1 – Financial Information

Basis of Accounting. The unaudited interim consolidated condensed financial statements of First Horizon National Corporation (“FHN”), including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. In the opinion of management, all necessary adjustments have been made for a fair presentation of financial position and results of operations for the periods presented. These adjustments are of a normal recurring nature unless otherwise disclosed in this Quarterly Report on Form 10-Q. The operating results for the interim 2016 periods are not necessarily indicative of the results that may be expected going forward. For further information, refer to the audited consolidated financial statements in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

Summary of Accounting Changes. Effective January 1, 2016, FHN early adopted the provisions of ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, on a prospective basis. ASU 2016-05 clarifies that a change in the counterparty of a derivative instrument that has been designated as the hedging instrument in an accounting hedge relationship does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. FHN considers the revised guidance to better reflect the nature of hedge accounting relationships by clarifying that, when considered solely, the counterparty is not a critical term in a hedge relationship. Because FHN has applied specific SEC staff guidance for novation (to facilitate central clearing requirements) of derivatives to prior and existing accounting hedge relationships, adoption of ASU 2016-05 had no effect on FHN.

Effective January 1, 2016, FHN early adopted the provisions of ASU 2016-06, “Contingent Put and Call Options in Debt Instruments”, which resolves diversity in practice for the bifurcation assessment when a contingent put or call option is embedded within a hybrid debt instrument. ASU 2016-06 clarifies that an entity is not required to assess whether the triggering event is related to interest rate or credit risks when performing the bifurcation analysis. FHN’s existing bifurcation assessment process conforms to the methodology outlined in ASU 2016-06.

Effective January 1, 2016, FHN adopted the provisions of ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition in determining expense recognition for the award. Thus, compensation cost is recognized over the requisite service period based on the probability of achievement of the performance condition. Expense is adjusted after the requisite service period for changes in the probability of achievement. The adoption of ASU 2014-12 had no effect on FHN.

Effective January 1, 2016, FHN adopted the provisions of ASU 2015-02, “Amendments to the Consolidation Analysis.” ASU 2015-02 revises current consolidation guidance to modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities. ASU 2015-02 also eliminates the presumption that a general partner should consolidate a limited partnership, revises the consolidation analysis for reporting entities that have fee arrangements and related party relationships with variable interest entities, and provides a scope exception for entities with interests in registered money market funds. FHN has evaluated the provisions of ASU 2015-02 on its consolidation assessments and there was not a significant effect upon adoption.

Effective January 1, 2016, FHN adopted the provisions of ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented as a direct reduction from the carrying value of that debt liability, consistent with debt discounts. ASU 2015-03 requires application on a retrospective basis, with prior periods revised to reflect the effects of adoption. Consistent with prior requirements, FHN previously classified debt issuance costs within Other assets in the Consolidated Condensed Statements of Condition. The adoption of ASU 2015-03 had no effect on FHN’s recognition of interest expense. The effects of the retrospective application of the change in presentation of debt issuance costs are summarized in the table below.

	As of September 30			As of December 31
(Dollars in thousands)	2015			2015			2014
Increase/(decrease) to previously reported Consolidated Statements of Condition amounts
Other assets	$	(1,246	)	$	(2,499	)	$	(2,764	)
Term Borrowings		(1,246	)		(2,499	)		(2,764	)

9

Note 1 – Financial Information (Continued)

Accounting Changes Issued but Not Currently Effective

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial instruments. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance for licensing arrangements. ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. The effective date of these ASUs has been deferred to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN is evaluating the effects of these ASUs on its revenue recognition practices.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such events or conditions exist, additional disclosures are required and management should evaluate whether its plans sufficiently alleviate the substantial doubt. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and all interim and annual periods thereafter. The provisions of ASU 2014-15 are not anticipated to affect FHN.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net income. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-01 on its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 leaves lessor accounting largely unchanged from prior standards. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset. For finance leases, interest on the lease liability is recognized separately from amortization of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term. For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use

10

Note 1 – Financial Information (Continued)

asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements. ASU 2016-02 also requires expanded qualitative and quantitative disclosures to assess the amount, timing, and uncertainty of cash flows arising from lease arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid-stored value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds. ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account. ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires will be recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Consistent with this change, excess tax benefits and deficiencies will no longer be included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share. Excess tax benefits will also be recognized at the time an award is exercised or vests compared to the current requirement to delay recognition until the deduction reduces taxes payable. The presentation of excess tax benefits in the statement of cash flows will shift to an operating activity from the current classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur rather than the current requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under current guidance, withholding of equity awards in excess of the minimum statutory requirement results in liability classification for the entire award. The related cash remittance by the employer for employee taxes will be treated as a financing activity in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Transition to the new guidance will be accomplished through a combination of retrospective, cumulative-effect adjustment to equity and prospective methodologies. FHN currently estimates that adoption of ASU 2016-09 will result in an increase in tax provision in 2017 between $1.0 million and $2.0 million. The effects on earnings per share calculations and elections to account for forfeitures as incurred are not anticipated to be significant.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected. This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination. ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value. However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”). For PCD assets, the initial allowance for credit losses is added to the purchase price. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption. Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized. Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to

11

Note 1 – Financial Information (Continued)

improvements in cash flows after the date of adoption will be recorded in earnings when received. A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than insignificant credit deterioration since origination. An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018. FHN is evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices. Since the CECL methodology encompasses a “life of loan” requirement for the recognition of credit losses, the estimated amount of such losses will be larger than the estimate of probable incurred losses under current standards. The extent of this difference will be dependent upon economic considerations and loan portfolio characteristics at the time of adoption.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists. ASU 2016-15 also provides an accounting policy election to classify cash flows from an equity method investee under the cumulative earnings approach or the nature of distribution approach. Finally, ASU 2016-15 provides guidance on the presentation of individual cash flows with characteristics of multiple classifications. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The provisions of ASU 2016-15 should be applied using a retrospective transition method to each period presented. FHN is evaluating the impact of ASU 2016-15 on its current cash flow presentation practices.

12

Note 2 – Acquisitions and Divestitures

On October 27, 2016, FTN Financial announced its plan to acquire Coastal Securities (“Coastal”), a national leader in the trading, securitization, and analysis of Small Business Administration (“SBA”) loans, for approximately $160 million in cash. Based in Houston, TX, Coastal also trades United States Department of Agriculture (“USDA”) loans and fixed income products and provides municipal underwriting and advisory services to its clients. Coastal’s government-guaranteed loan products, combined with FTN Financial’s existing SBA trading activities, will establish an additional major product sector for FTN Financial. The transaction, which is subject to regulatory approvals, the affirmative vote of Coastal Financial Holdings, Inc. (“CFH”) shareholders and other customary closing conditions, is expected to close in early 2017.

On September 16, 2016, FTBNA acquired $537.4 million in unpaid principal balance (“UPB”) of restaurant franchise loans from GE Capital’s Southeast and Southwest regional portfolios. Subsequent to the acquisition the acquired loans were combined with existing FTBNA relationships to establish a franchise finance specialty lending business.

On October 2, 2015, FHN completed its acquisition of TrustAtlantic Financial Corporation (“TrustAtlantic Financial” or “TAF”), and its wholly-owned bank subsidiary TrustAtlantic Bank (“TAB”), for an aggregate of 5,093,657 shares of FHN common stock and $23.9 million in cash in a transaction valued at $96.7 million. Prior to the acquisition TAB had five branches located in Raleigh, Cary and Greenville, North Carolina. In relation to the acquisition, FHN acquired approximately $400 million in assets, including approximately $282 million in loans, and assumed approximately $344 million of TAB deposits. FHN recorded $45.4 million in goodwill associated with the acquisition, representing the excess of acquisition consideration over the estimated fair value of net assets acquired.

See Note 2 – Acquisitions and Divestitures in the Notes to Consolidated Financial Statements on Form 10-K for the year ended December 31, 2015, for additional information about the TAF acquisition.

In addition to the transactions mentioned above, FHN acquires or divests assets from time to time in transactions that are considered business combination or divestitures but are not material to FHN individually or in the aggregate.

13

Note 3 – Investment Securities

The following tables summarize FHN’s investment securities on September 30, 2016 and 2015:

	September 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
Securities available-for-sale:
U.S. treasuries	$	100	$	—	$	—		$	100
Government agency issued mortgage-backed securities (“MBS”)		1,877,496		62,910		(49	)		1,940,357
Government agency issued collateralized mortgage obligations (“CMO”)		1,881,795		21,457		(2,108	)		1,901,144
Equity and other (a)		185,992		1		—			185,993
Total securities available-for-sale (b)	$	3,945,383	$	84,368	$	(2,157	)	$	4,027,594
Securities held-to-maturity:
States and municipalities	$	4,340	$	400	$	—		$	4,740
Corporate bonds		10,000		302		—			10,302
Total securities held-to-maturity	$	14,340	$	702	$	—		$	15,042

(a) Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million. The remainder is money market and cost method investments.

(b) Includes $3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
Securities available-for-sale:
U.S. treasuries	$	100	$	—	$	—		$	100
Government agency issued MBS		914,878		31,773		(700	)		945,951
Government agency issued CMO		2,514,362		30,281		(9,207	)		2,535,436
Other U.S. government agencies		1,443		3		—			1,446
States and municipalities		9,155		—		—			9,155
Equity and other (a)		182,014		—		(461	)		181,553
Total securities available-for-sale (b)	$	3,621,952	$	62,057	$	(10,368	)	$	3,673,641
Securities held-to-maturity:
States and municipalities	$	4,313	$	1,091	$	—		$	5,404
Total securities held-to-maturity	$	4,313	$	1,091	$	—		$	5,404

(a) Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million. The remainder is money market, mutual funds, and cost method investments.

(b) Includes $2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

14

Note 3 – Investment Securities (Continued)

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on September 30, 2016 are provided below:

	Held-to-Maturity				Available-for-Sale
	Amortized		Fair		Amortized		Fair
(Dollars in thousands)	Cost		Value		Cost		Value
Within 1 year	$	—	$	—	$	100	$	100
After 1 year; within 5 years		—		—		—		—
After 5 years; within 10 years		10,000		10,302		—		—
After 10 years		4,340		4,740		—		—
Subtotal		14,340		15,042		100		100
Government agency issued MBS and CMO (a)		—		—		3,759,291		3,841,501
Equity and other		—		—		185,992		185,993
Total	$	14,340	$	15,042	$	3,945,383	$	4,027,594

(a) Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides information on gross gains and gross losses from available-for-sale investment securities for the three and nine months ended September 30:

	Three Months Ended						Nine Months Ended
	September 30						September 30
(Dollars in thousands)	2016			2015			2016			2015
Gross gains on sales of securities	$	—		$	—		$	3,999		$	284
Gross (losses) on sales of securities		—			—			(2,326	)		—
Net gain/(loss) on sales of securities (a)		—			—			1,673			284
Net OTTI recorded (b)		(200	)		(345	)		(200	)		(345	)
Total securities gain/(loss), net	$	(200	)	$	(345	)	$	1,473		$	(61	)

(a) There were no sales proceeds for the three months ended September 30, 2016 and 2015; cash proceeds for the nine months ended September 30, 2016 and 2015 were $1.5 million and $.3 million, respectively. Nine months ended September 30, 2016 includes a $1.7 million gain from an exchange of approximately $294 million of AFS debt securities.

(b) OTTI recorded is related to equity securities.

15

Note 3 – Investment Securities (Continued)

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2016 and 2015:

	As of September 30, 2016
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Losses			Value		Losses			Value		Losses
Government agency issued CMO	$	320,282	$	(631	)	$	142,060	$	(1,477	)	$	462,342	$	(2,108	)
Government agency issued MBS		38,477		(49	)		—		—			38,477		(49	)
Total temporarily impaired securities	$	358,759	$	(680	)	$	142,060	$	(1,477	)	$	500,819	$	(2,157	)
	As of September 30, 2015
	Less than 12 months					12 months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollars in thousands)	Value		Losses			Value		Losses			Value		Losses
Government agency issued CMO	$	370,165	$	(1,487	)	$	435,331	$	(7,720	)	$	805,496	$	(9,207	)
Government agency issued MBS		69,997		(242	)		32,538		(458	)		102,535		(700	)
Total debt securities		440,162		(1,729	)		467,869		(8,178	)		908,031		(9,907	)
Equity		—		—			630		(461	)		630		(461	)
Total temporarily impaired securities	$	440,162	$	(1,729	)	$	468,499	$	(8,639	)	$	908,661	$	(10,368	)

FHN has reviewed investment securities that were in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. For debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. The decline in value is primarily attributable to changes in interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.

16

Note 4 – Loans

The following table provides the balance of loans by portfolio segment as of September 30, 2016 and 2015, and December 31, 2015:

	September 30				December 31
(Dollars in thousands)	2016		2015		2015
Commercial:
Commercial, financial, and industrial	$	12,118,298	$	9,610,295	$	10,436,390
Commercial real estate		2,065,595		1,488,044		1,674,935
Consumer:
Consumer real estate (a)		4,578,371		4,813,936		4,766,518
Permanent mortgage		436,100		463,893		454,123
Credit card & other		357,423		349,324		354,536
Loans, net of unearned income	$	19,555,787	$	16,725,492	$	17,686,502
Allowance for loan losses		201,557		210,814		210,242
Total net loans	$	19,354,230	$	16,514,678	$	17,476,260

(a) Balances as of September 30, 2016 and 2015, and December 31, 2015, include $38.5 million, $59.3 million, and $52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

COMPONENTS OF THE LOAN PORTFOLIO

The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial (“C&I”) and commercial real estate (“CRE”). Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans (“TRUPS”) (i.e. long-term unsecured loans to bank and insurance - related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate (“R/E”) installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other.

Concentrations

FHN has a concentration of residential real estate loans (26 percent of total loans), the majority of which is in the consumer real estate segment (23 percent of total loans). Loans to finance and insurance companies total $2.3 billion (19 percent of the C&I portfolio, or 12 percent of the total loans). FHN had loans to mortgage companies totaling $2.5 billion (20 percent of the C&I segment, or 13 percent of total loans) as of September 30, 2016. As a result, 39 percent of the C&I segment was sensitive to impacts on the financial services industry.

Acquisition

On September 16, 2016, FHN completed its acquisition of restaurant franchise loans from GE Capital. The acquisition included $537.4 million in unpaid principal balance of loans.

On October 2, 2015, FHN completed its acquisition of TAF, and its wholly-owned bank subsidiary TAB. The acquisition included $298.1 million in unpaid principal balance of loans with a fair value of $281.9 million.

Generally, the fair value for the acquired loans is estimated using a discounted cash flow analysis with significant unobservable inputs (Level 3) including adjustments for expected credit losses, prepayment speeds, current market rates for similar loans, and an adjustment for investor-required yield given product-type and various risk characteristics.

At each acquisition, FHN designated certain loans as PCI with the remaining loans accounted for under ASC 310-20, “Nonrefundable Fees and Other Costs.” For loans accounted for under ASC 310-20, the difference between each loan’s book value and the estimated fair value at the time of the acquisition will be accreted into interest income over its remaining contractual life and the subsequent accounting and reporting will be similar to a loan in FHN’s originated portfolio.

17

Note 4 – Loans (Continued)

Purchased Credit-Impaired Loans

The following table reflects FHN’s contractually required payment receivable, cash flows expected to be collected and the fair value of PCI loans at the acquisition date of September 16, 2016.

(Dollars in thousands)	September 16, 2016
Contractually required payments including interest	$	40,143
Less: nonaccretable difference		(1,030	)
Cash flows expected to be collected		39,113
Less: accretable yield		(2,883	)
Fair value of loans acquired	$	36,230

The following table presents a rollforward of the accretable yield for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended						Nine Months Ended
	September 30						September 30
(Dollars in thousands)	2016			2015			2016			2015
Balance, beginning of period	$	6,171		$	8,348		$	8,542		$	14,714
Additions		2,883			—			2,883			—
Accretion		(837	)		(1,037	)		(2,984	)		(5,985	)
Adjustment for payoffs		(179	)		(835	)		(4,408	)		(2,931	)
Adjustment for charge-offs		—			—			(674	)		—
Increase in accretable yield (a)		686			500			5,398			1,178
Other		—			—			(33	)		—
Balance, end of period	$	8,724		$	6,976		$	8,724		$	6,976

(a) Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

At September 30, 2016, the ALLL related to PCI loans was $1.2 million compared to $2.9 million at September 30, 2015. A loan loss provision expense of $.3 million was recognized during the three months ended September 30, 2016, as compared to $.1 million recognized during the three months ended September 30, 2015. The PCI provision was not material for the nine months ended September 30, 2016, and was a provision credit of $.4 million for the nine months ended September 30, 2015.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of September 30, 2016 and 2015, and December 31, 2015:

	September 30, 2016				September 30, 2015				December 31, 2015
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	46,189	$	47,882	$	4,767	$	5,353	$	16,063	$	18,573
Commercial real estate		8,661		11,340		17,998		21,138		19,929		25,504
Consumer real estate		1,233		1,733		1,968		2,636		3,672		4,533
Credit card and other		51		65		6		10		52		76
Total	$	56,134	$	61,020	$	24,739	$	29,137	$	39,716	$	48,686

18

Note 4 – Loans (Continued)

Impaired Loans

The following tables provide information at September 30, 2016 and 2015, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and net LOCOM have been excluded.

	September 30, 2016						Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	13,127	$	20,666	$	—	$	13,708	$	—	$	12,088	$	—
Income CRE		—		—		—		1,234		—		2,057		—
Total	$	13,127	$	20,666	$	—	$	14,942	$	—	$	14,145	$	—
Consumer:
HELOC (a)	$	11,359	$	24,541	$	—	$	11,273	$	—	$	11,100	$	—
R/E installment loans (a)		4,084		5,094		—		4,158		—		4,333		—
Permanent mortgage (a)		4,279		6,654		—		4,280		—		4,292		—
Total	$	19,722	$	36,289	$	—	$	19,711	$	—	$	19,725	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	32,982	$	34,915	$	4,262	$	33,433	$	289	$	29,896	$	668
TRUPS		3,242		3,700		925		3,258		—		3,291		—
Income CRE		1,968		2,246		113		3,211		15		4,376		55
Residential CRE		1,334		1,803		103		1,355		5		1,376		17
Total	$	39,526	$	42,664	$	5,403	$	41,257	$	309	$	38,939	$	740
Consumer:
HELOC	$	86,967	$	89,500	$	15,769	$	87,919	$	546	$	88,266	$	1,527
R/E installment loans		56,499		57,686		13,692		57,775		357		58,890		1,019
Permanent mortgage		89,792		102,355		14,611		90,697		544		92,716		1,602
Credit card & other		340		340		139		348		4		353		10
Total	$	233,598	$	249,881	$	44,211	$	236,739	$	1,451	$	240,225	$	4,158
Total commercial	$	52,653	$	63,330	$	5,403	$	56,199	$	309	$	53,084	$	740
Total consumer	$	253,320	$	286,170	$	44,211	$	256,450	$	1,451	$	259,950	$	4,158
Total impaired loans	$	305,973	$	349,500	$	49,614	$	312,649	$	1,760	$	313,034	$	4,898

(a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

19

Note 4 – Loans (Continued)

	September 30, 2015						Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)	Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
General C&I	$	5,586	$	7,266	$	—	$	8,994	$	—	$	11,202	$	—
Income CRE		2,468		9,389		—		3,328		—		4,631		—
Residential CRE		—		—		—		—		—		191		—
Total	$	8,054	$	16,655	$	—	$	12,322	$	—	$	16,024	$	—
Consumer:
HELOC (a)	$	11,000	$	28,486	$	—	$	11,788	$	—	$	12,455	$	—
R/E installment loans (a)		4,404		5,756		—		4,682		—		4,696		—
Permanent mortgage (a)		5,983		8,255		—		6,193		—		6,743		—
Total	$	21,387	$	42,497	$	—	$	22,663	$	—	$	23,894	$	—
Impaired loans with related allowance recorded:
Commercial:
General C&I	$	21,319	$	25,515	$	846	$	25,934	$	238	$	24,702	$	727
TRUPS		13,369		13,700		5,310		13,384		—		13,414		—
Income CRE		6,424		7,709		496		6,606		32		6,962		95
Residential CRE		1,417		1,886		91		1,468		6		1,512		19
Total	$	42,529	$	48,810	$	6,743	$	47,392	$	276	$	46,590	$	841
Consumer:
HELOC	$	89,199	$	91,382	$	17,200	$	88,245	$	474	$	86,359	$	1,383
R/E installment loans		65,465		66,431		16,718		66,367		352		68,274		1,010
Permanent mortgage		99,071		111,683		15,696		99,913		613		102,341		1,841
Credit card & other		380		380		168		399		3		453		11
Total	$	254,115	$	269,876	$	49,782	$	254,924	$	1,442	$	257,427	$	4,245
Total commercial	$	50,583	$	65,465	$	6,743	$	59,714	$	276	$	62,614	$	841
Total consumer	$	275,502	$	312,373	$	49,782	$	277,587	$	1,442	$	281,321	$	4,245
Total impaired loans	$	326,085	$	377,838	$	56,525	$	337,301	$	1,718	$	343,935	$	5,086

(a) All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Asset Quality Indicators

FHN employs a dual grade commercial risk grading methodology to assign an estimate for the probability of default (“PD”) and the loss given default (“LGD”) for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 - Allowance for Loan Losses for further discussion on the credit grading system.

20

Note 4 – Loans (Continued)

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of September 30, 2016 and 2015:

	September 30, 2016
			Loans to													Allowance
	General		Mortgage				Income		Residential				Percentage			for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total			Losses
PD Grade:
1	$	475,708	$	—	$	—	$	1,109	$	—	$	476,817		3	%	$	85
2		689,620		—		—		11,586		91		701,297		5			332
3		445,832		645,764		—		133,661		—		1,225,257		9			298
4		924,003		409,470		—		230,460		—		1,563,933		11			1,001
5		1,148,228		286,413		—		299,750		561		1,734,952		12			6,330
6		1,417,978		762,294		—		297,287		13,145		2,490,704		18			10,367
7		1,431,070		209,511		—		479,531		3,286		2,123,398		15			13,302
8		995,678		93,661		—		321,942		4,174		1,415,455		10			23,930
9		634,142		32,537		—		105,274		4,079		776,032		5			14,419
10		367,947		40,099		—		57,528		12,708		478,282		3			8,401
11		218,754		—		—		24,245		4,532		247,531		2			6,229
12		118,425		—		—		12,678		6,701		137,804		1			4,290
13		216,314		—		304,527		8,990		135		529,966		4			7,262
14,15,16		154,412		70		—		18,207		1,441		174,130		1			16,804
Collectively evaluated for impairment		9,238,111		2,479,819		304,527		2,002,248		50,853		14,075,558		99			113,050
Individually evaluated for impairment		46,109		—		3,242		1,968		1,334		52,653		—			5,403
Purchased credit-impaired loans		46,490		—		—		8,758		434		55,682		1			833
Total commercial loans	$	9,330,710	$	2,479,819	$	307,769	$	2,012,974	$	52,621	$	14,183,893		100	%	$	119,286
	September 30, 2015
			Loans to													Allowance
	General		Mortgage				Income		Residential				Percentage			for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total			Losses
PD Grade:
1	$	529,836	$	—	$	—	$	707	$	—	$	530,543		5	%	$	127
2		590,614		—		—		10,835		126		601,575		5			322
3		453,831		327,776		—		90,588		—		872,195		8			311
4		822,515		315,061		—		110,165		302		1,248,043		11			949
5		1,190,085		239,391		—		234,729		7,015		1,671,220		15			6,901
6		1,201,553		350,401		—		347,740		2,793		1,902,487		17			10,630
7		1,278,443		98,262		—		354,457		4,670		1,735,832		16			13,891
8		747,760		18,189		—		150,375		561		916,885		8			13,953
9		377,998		26,240		—		42,995		2,212		449,445		4			8,310
10		188,711		—		—		30,515		89		219,315		2			4,635
11		186,974		—		—		28,004		747		215,725		2			5,861
12		80,836		—		—		9,095		516		90,447		1			2,975
13		112,423		—		305,382		3,600		260		421,665		4			4,256
14,15,16		123,345		—		—		23,195		1,277		147,817		1			14,533
Collectively evaluated for impairment		7,884,924		1,375,320		305,382		1,437,000		20,568		11,023,194		99			87,654
Individually evaluated for impairment		26,904		—		12,755		8,892		1,417		49,968		1			6,743
Purchased credit-impaired loans		5,010		—		—		18,533		1,634		25,177		—			2,414
Total commercial loans	$	7,916,838	$	1,375,320	$	318,137	$	1,464,425	$	23,619	$	11,098,339		100	%	$	96,811

(a) Balances as of September 30, 2016 and 2015, presented net of $25.5 million and $26.2 million, respectively, in lower of cost or market (“LOCOM”) valuation adjustment. Based on the underlying structure of the notes, the highest possible internal grade is “13”.

21

Note 4 – Loans (Continued)

The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of September 30, 2016 and 2015:

	September 30, 2016									September 30, 2015
	HELOC			R/E Installment Loans			Permanent Mortgage			HELOC			R/E Installment Loans			Permanent Mortgage
FICO score greater than or equal to 740		56.3	%		68.7	%		43.6	%		55.4	%		67.6	%		43.1	%
FICO score 720-739		8.9			9.1			9.5			8.8			8.1			9.2
FICO score 700-719		8.8			7.1			11.9			9.2			7.9			10.0
FICO score 660-699		13.2			8.8			16.5			12.9			8.8			16.8
FICO score 620-659		5.9			3.4			8.7			6.5			4.1			8.4
FICO score less than 620 (a)		6.9			2.9			9.8			7.2			3.5			12.5
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

(a) For this group, a majority of the FICO scores at the time of the origination exceeded 620 but have since deteriorated as the loans have seasoned.

Nonaccrual and Past Due Loans

The following table reflects accruing and non-accruing loans by class on September 30, 2016:

	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,253,922	$	3,570	$	96	$	9,257,588	$	9,897	$	2,440	$	14,295	$	26,632	$	9,284,220
Loans to mortgage companies		2,478,708		1,041		—		2,479,749		—		—		70		70		2,479,819
TRUPS (a)		304,527		—		—		304,527		—		—		3,242		3,242		307,769
Purchased credit-impaired loans		45,311		711		468		46,490		—		—		—		—		46,490
Total commercial (C&I)		12,082,468		5,322		564		12,088,354		9,897		2,440		17,607		29,944		12,118,298
Commercial real estate:
Income CRE		2,000,553		1,071		—		2,001,624		113		468		2,011		2,592		2,004,216
Residential CRE		50,221		1,141		—		51,362		—		—		825		825		52,187
Purchased credit-impaired loans		7,697		390		1,105		9,192		—		—		—		—		9,192
Total commercial real estate		2,058,471		2,602		1,105		2,062,178		113		468		2,836		3,417		2,065,595
Consumer real estate:
HELOC		1,693,312		16,054		10,031		1,719,397		50,377		4,101		10,126		64,604		1,784,001
R/E installment loans		2,754,910		9,932		3,129		2,767,971		19,251		2,319		3,263		24,833		2,792,804
Purchased credit-impaired loans		1,315		—		251		1,566		—		—		—		—		1,566
Total consumer real estate		4,449,537		25,986		13,411		4,488,934		69,628		6,420		13,389		89,437		4,578,371
Permanent mortgage		396,285		4,331		6,380		406,996		11,113		3,867		14,124		29,104		436,100
Credit card & other:
Credit card		186,482		1,464		1,230		189,176		—		—		—		—		189,176
Other		167,015		843		190		168,048		—		—		148		148		168,196
Purchased credit-impaired loans		51		—		—		51		—		—		—		—		51
Total credit card & other		353,548		2,307		1,420		357,275		—		—		148		148		357,423
Total loans, net of unearned income	$	19,340,309	$	40,548	$	22,880	$	19,403,737	$	90,751	$	13,195	$	48,104	$	152,050	$	19,555,787

(a) Total TRUPS includes LOCOM valuation adjustment of $25.5 million.

22

Note 4 – Loans (Continued)

The following table reflects accruing and non-accruing loans by class on September 30, 2015:

	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	7,888,633	$	6,095	$	349	$	7,895,077	$	5,359	$	1,553	$	9,839	$	16,751	$	7,911,828
Loans to mortgage companies		1,373,103		2,102		—		1,375,205		—		—		115		115		1,375,320
TRUPS (a)		305,382		—		—		305,382		—		—		12,755		12,755		318,137
Purchased credit-impaired loans		4,705		—		305		5,010		—		—		—		—		5,010
Total commercial (C&I)		9,571,823		8,197		654		9,580,674		5,359		1,553		22,709		29,621		9,610,295
Commercial real estate:
Income CRE		1,435,395		2,394		—		1,437,789		914		—		7,189		8,103		1,445,892
Residential CRE		21,905		80		—		21,985		—		—		—		—		21,985
Purchased credit-impaired loans		16,172		3,845		150		20,167		—		—		—		—		20,167
Total commercial real estate		1,473,472		6,319		150		1,479,941		914		—		7,189		8,103		1,488,044
Consumer real estate:
HELOC		2,056,044		19,459		10,146		2,085,649		63,667		5,150		9,126		77,943		2,163,592
R/E installment loans		2,599,513		11,423		3,211		2,614,147		26,293		2,174		5,258		33,725		2,647,872
Purchased credit-impaired loans		2,383		—		89		2,472		—		—		—		—		2,472
Total consumer real estate		4,657,940		30,882		13,446		4,702,268		89,960		7,324		14,384		111,668		4,813,936
Permanent mortgage		420,727		4,051		5,270		430,048		14,044		3,228		16,573		33,845		463,893
Credit card & other:
Credit card		187,770		2,049		1,171		190,990		—		—		—		—		190,990
Other		156,664		718		202		157,584		—		—		743		743		158,327
Purchased credit-impaired loans		7		—		—		7		—		—		—		—		7
Total credit card & other		344,441		2,767		1,373		348,581		—		—		743		743		349,324
Total loans, net of unearned income	$	16,468,403	$	52,216	$	20,893	$	16,541,512	$	110,277	$	12,105	$	61,598	$	183,980	$	16,725,492

(a) Total TRUPS includes LOCOM valuation adjustment of $26.2 million.

Troubled Debt Restructurings

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately.

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR.

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt ratio. After 5 years, the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities

23

Note 4 – Loans (Continued)

may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance.

Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs.

On September 30, 2016 and 2015, FHN had $289.6 million and $304.7 million portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $48.7 million and $51.2 million, or 17 percent as of September 30, 2016 and 2015. Additionally, $71.2 million and $72.6 million of loans held-for-sale as of September 30, 2016 and 2015, respectively, were classified as TDRs.

24

Note 4 – Loans (Continued)

The following tables reflect portfolio loans that were classified as TDRs during the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number		Recorded Investment		Recorded Investment		Number		Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		2	$	419	$	419		7	$	20,302	$	19,194
Total commercial (C&I)		2		419		419		7		20,302		19,194
Commercial real estate:
Income CRE		1		100		99		1		100		99
Total commercial real estate		1		100		99		1		100		99
Consumer real estate:
HELOC		48		5,720		5,573		200		18,418		18,189
R/E installment loans		10		345		337		44		4,569		4,846
Total consumer real estate		58		6,065		5,910		244		22,987		23,035
Permanent mortgage		2		710		704		6		1,551		1,544
Credit card & other		10		45		44		15		66		64
Total troubled debt restructurings		73	$	7,339	$	7,176		273	$	45,006	$	43,936
	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
			Outstanding		Outstanding				Outstanding		Outstanding
(Dollars in thousands)	Number		Recorded Investment		Recorded Investment		Number		Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		—	$	—	$	—		2	$	1,388	$	1,325
Total commercial (C&I)		—		—		—		2		1,388		1,325
Commercial real estate:
Income CRE		—		—		—		—		—		—
Total commercial real estate		—		—		—		—		—		—
Consumer real estate:
HELOC		56		6,918		6,820		158		17,882		17,674
R/E installment loans		20		988		974		58		4,254		4,267
Total consumer real estate		76		7,906		7,794		216		22,136		21,941
Permanent mortgage		—		—		—		6		2,039		2,054
Credit card & other		3		11		10		15		59		56
Total troubled debt restructurings		79	$	7,917	$	7,804		239	$	25,622	$	25,376

25

Note 4 – Loans (Continued)

The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2016 and 2015, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.

	Three Months Ended				Nine Months Ended
	September 30, 2016				September 30, 2016
			Recorded				Recorded
(Dollars in thousands)	Number		Investment		Number		Investment
Commercial real estate:
Residential CRE		—	$	—		—	$	—
Total commercial real estate		—		—		—		—
Consumer real estate:
HELOC		—		—		2		138
R/E installment loans		—		—		1		180
Total consumer real estate		—		—		3		318
Credit card & other		—		—		—		—
Total troubled debt restructurings		—	$	—		3	$	318
	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
			Recorded				Recorded
(Dollars in thousands)	Number		Investment		Number		Investment
Commercial real estate:
Residential CRE		—	$	—		1	$	896
Total commercial real estate		—		—		1		896
Consumer real estate:
HELOC		—		—		7		308
R/E installment loans		2		50		4		162
Total consumer real estate		2		50		11		470
Credit card & other		1		2		4		10
Total troubled debt restructurings		3	$	52		16	$	1,376

26

Note 5 - Allowance for Loan Losses

The ALLL includes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous consumer loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The pace of the economic recovery, performance of the housing market, unemployment levels, labor participation rate, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note 5 – Allowance for Loan Losses in the Notes to Consolidated Financial Statements on Form 10-K for the year ended December 31, 2015, for additional information about the policies and methodologies used in the aforementioned components of the ALLL.

27

Note 5 - Allowance for Loan Losses (Continued)

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2016 and 2015:

				Commercial			Consumer			Permanent			Credit Card
(Dollars in thousands)	C&I			Real Estate			Real Estate			Mortgage			and Other			Total
Balance as of July 1, 2016	$	80,972		$	30,264		$	59,081		$	17,600		$	11,890		$	199,807
Charge-offs		(1,992	)		(49	)		(4,359	)		(373	)		(3,589	)		(10,362	)
Recoveries		725			651			5,591			239			906			8,112
Provision/(provision credit) for loan losses		7,161			1,554			(7,078	)		(877	)		3,240			4,000
Balance as of September 30, 2016		86,866			32,420			53,235			16,589			12,447			201,557
Balance as of January 1, 2016	$	73,637		$	25,159		$	80,614		$	18,947		$	11,885		$	210,242
Charge-offs		(16,386	)		(742	)		(17,867	)		(834	)		(10,441	)		(46,270	)
Recoveries		3,107			1,782			17,408			1,502			2,786			26,585
Provision/(provision credit) for loan losses		26,508			6,221			(26,920	)		(3,026	)		8,217			11,000
Balance as of September 30, 2016		86,866			32,420			53,235			16,589			12,447			201,557
Allowance - individually evaluated for impairment		5,187			216			29,461			14,611			139			49,614
Allowance - collectively evaluated for impairment		81,376			31,674			23,441			1,978			12,308			150,777
Allowance - purchased credit-impaired loans		303			530			333			—			—			1,166
Loans, net of unearned as of September 30, 2016:
Individually evaluated for impairment		49,351			3,302			158,909			94,071			340			305,973
Collectively evaluated for impairment		12,022,457			2,053,101			4,417,896			342,029			357,032			19,192,515
Purchased credit-impaired loans		46,490			9,192			1,566			—			51			57,299
Total loans, net of unearned income	$	12,118,298		$	2,065,595		$	4,578,371		$	436,100		$	357,423		$	19,555,787
Balance as of July 1, 2015	$	78,750		$	21,492		$	85,457		$	22,377		$	13,275		$	221,351
Charge-offs		(8,632	)		(533	)		(7,994	)		(1,038	)		(3,612	)		(21,809	)
Recoveries		2,264			868			5,785			229			1,126			10,272
Provision/(provision credit) for loan losses		(919	)		3,521			(776	)		(1,492	)		666			1,000
Balance as of September 30, 2015		71,463			25,348			82,472			20,076			11,455			210,814
Balance as of January 1, 2015	$	67,011		$	18,574		$	113,011		$	19,122		$	14,730		$	232,448
Charge-offs		(17,163	)		(2,208	)		(23,434	)		(3,031	)		(13,406	)		(59,242	)
Recoveries		5,143			1,712			18,360			1,518			2,875			29,608
Provision/(provision credit) for loan losses		16,472			7,270			(25,465	)		2,467			7,256			8,000
Balance as of September 30, 2015		71,463			25,348			82,472			20,076			11,455			210,814
Allowance - individually evaluated for impairment		6,156			587			33,918			15,696			168			56,525
Allowance - collectively evaluated for impairment		65,063			22,591			48,050			4,380			11,286			151,370
Allowance - purchased credit-impaired loans		244			2,170			504			—			1			2,919
Loans, net of unearned as of September 30, 2015:
Individually evaluated for impairment		39,659			10,309			170,068			105,054			380			325,470
Collectively evaluated for impairment		9,565,626			1,457,568			4,641,396			358,839			348,937			16,372,366
Purchased credit-impaired loans		5,010			20,167			2,472			—			7			27,656
Total loans, net of unearned income	$	9,610,295		$	1,488,044		$	4,813,936		$	463,893		$	349,324		$	16,725,492

28

Note 6 – Intangible Assets

The following is a summary of goodwill and other intangible assets, net of accumulated amortization, included in the Consolidated Condensed Statements of Condition:

			Other
			Intangible
(Dollars in thousands)	Goodwill		Assets (a)
December 31, 2014	$	145,932	$	29,518
Amortization expense		—		(3,894	)
September 30, 2015	$	145,932	$	25,624
December 31, 2015 (b)	$	191,307	$	26,215
Amortization expense		—		(3,898	)
Additions		64		—
September 30, 2016	$	191,371	$	22,317

(a) Represents customer lists, acquired contracts, core deposit intangibles, and covenants not to compete.

(b) The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

The gross carrying amount and accumulated amortization of other intangible assets subject to amortization is $72.3 million and $50.0 million, respectively on September 30, 2016. Estimated aggregate amortization expense is expected to be $1.3 million for the remainder of 2016, and $4.9 million, $4.7 million, $4.5 million, $1.7 million, and $1.6 million for the twelve-month periods of 2017, 2018, 2019, 2020, and 2021, respectively.

Gross goodwill, accumulated impairments, and accumulated divestiture related write-offs were determined beginning January 1, 2012, when a change in accounting requirements resulted in goodwill being assessed for impairment rather than being amortized. Gross goodwill of $200.0 million with accumulated impairments and accumulated divestiture related write-offs of $114.1 million and $85.9 million, respectively, were previously allocated to the non-strategic segment, resulting in $0 net goodwill allocated to the non-strategic segment as of September 30, 2015 and 2016. The regional bank and fixed income segments do not have any accumulated impairments or divestiture related write-offs. The following is a summary of goodwill by reportable segment included in the Consolidated Condensed Statements of Condition as of and for the nine months ended September 30, 2015 and 2016.

	Regional		Fixed
(Dollars in thousands)	Banking		Income		Total
December 31, 2014	$	47,928	$	98,004	$	145,932
Additions		—		—		—
Impairments		—		—		—
Divestitures		—		—		—
September 30, 2015	$	47,928	$	98,004	$	145,932
December 31, 2015 (a)	$	93,303	$	98,004	$	191,307
Additions		64		—		64
Impairments		—		—		—
Divestitures		—		—		—
September 30, 2016	$	93,367	$	98,004	$	191,371

(a) The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

29

Note 7 – Other Income and Other Expense

Following is detail of All other income and commissions and All other expense as presented in the Consolidated Condensed Statements of Income:

	Three Months Ended September 30					Nine Months Ended September 30
(Dollars in thousands)	2016		2015			2016		2015
All other income and commissions:
Mortgage banking	$	5,524	$	761		$	7,395	$	2,721
ATM interchange fees		3,081		2,998			8,918		8,784
Electronic banking fees		1,398		1,479			4,176		4,366
Deferred compensation (a)		1,038		(2,309	)		2,162		(1,311	)
Letter of credit fees		981		978			3,157		3,633
Gain on extinguishment of debt		—		5,794			—		5,794
Other		5,518		3,550			10,594		13,096
Total	$	17,540	$	13,251		$	36,402	$	37,083
All other expense:
Travel and entertainment	$	2,478	$	2,451		$	7,035	$	6,697
Customer relations		1,442		1,477			4,804		4,296
Employee training and dues		1,360		1,272			4,088		3,853
Supplies		1,158		974			3,114		2,781
Tax credit investments		788		439			2,325		1,383
Miscellaneous loan costs		676		726			1,958		1,821
Litigation and regulatory matters		260		10,922			25,785		173,422
Other		8,326		8,835			30,669		26,565
Total	$	16,488	$	27,096		$	79,778	$	220,818

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) Deferred compensation market value adjustments are mirrored by adjustments to employee compensation, incentives, and benefits expense.

30

Note 8 – Components of Other Comprehensive Income/(loss)

The following table provides the changes in accumulated other comprehensive income/(loss) by component, net of tax, for the three and nine months ended September 30, 2016 and 2015:

(Dollars in thousands)	Securities AFS			Cash Flow Hedges			Pension and Post- retirement Plans			Total
Balance as of July 1, 2016	$	58,591		$	4,691		$	(215,616	)	$	(152,334	)
Net unrealized gains/(losses)		(7,887	)		(1,211	)		—			(9,098	)
Amounts reclassified from AOCI		—			(359	)		963			604
Other comprehensive income/(loss)		(7,887	)		(1,570	)		963			(8,494	)
Balance as of September 30, 2016	$	50,704		$	3,121		$	(214,653	)	$	(160,828	)
Balance as of January 1, 2016	$	3,394		$	—		$	(217,586	)	$	(214,192	)
Net unrealized gains/(losses)		48,330			4,228			—			52,558
Amounts reclassified from AOCI		(1,020	)		(1,107	)		2,933			806
Other comprehensive income/(loss)		47,310			3,121			2,933			53,364
Balance as of September 30, 2016	$	50,704		$	3,121		$	(214,653	)	$	(160,828	)
(Dollars in thousands)
Balance as of July 1, 2015	$	16,485		$	—		$	(204,733	)	$	(188,248	)
Net unrealized gains/(losses)		15,427			—			—			15,427
Amounts reclassified from AOCI		—			—			(3,855	)		(3,855	)
Other comprehensive income/(loss)		15,427			—			(3,855	)		11,572
Balance as of September 30, 2015	$	31,912		$	—		$	(208,588	)	$	(176,676	)
Balance as of January 1, 2015	$	18,581		$	—		$	(206,827	)	$	(188,246	)
Net unrealized gains/(losses)		13,331			—			—			13,331
Amounts reclassified from AOCI		—			—			(1,761	)		(1,761	)
Other comprehensive income/(loss)		13,331			—			(1,761	)		11,570
Balance as of September 30, 2015	$	31,912		$	—		$	(208,588	)	$	(176,676	)

31

Note 8 – Components of Other Comprehensive Income/(loss) (Continued)

Reclassifications from AOCI, and related tax effects, were as follows:

(Dollars in thousands)	Three Months Ended September 30						Nine Months Ended September 30
Details about AOCI	2016			2015			2016			2015			Affected line item in the statement where net income is presented
Securities AFS:
Realized (gains)/losses on securities AFS	$	—		$	—		$	(1,654	)	$	—		Debt securities gains/(losses), net
Tax expense/(benefit)		—			—			634			—		Provision/(benefit) for income taxes
		—			—			(1,020	)		—
Cash flow hedges:
Realized (gains)/losses on cash flow hedges		(582	)		—			(1,795	)		—		Interest and fees on loans
Tax expense/(benefit)		223			—			688			—		Provision/(benefit) for income taxes
		(359	)		—			(1,107	)		—
Pension and Postretirement Plans:
Amortization of prior service cost, transition asset/obligation, and net actuarial gain/(loss)		1,561			(6,266	)		4,756			(2,854	)	Employee compensation, incentives, and benefits
Tax expense/(benefit)		(598	)		2,411			(1,823	)		1,093		Provision/(benefit) for income taxes
		963			(3,855	)		2,933			(1,761	)
Total reclassification from AOCI	$	604		$	(3,855	)	$	806		$	(1,761	)

32

Note 9 – Earnings Per Share

The following table provides reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars and shares in thousands, except per share data)	2016		2015		2016		2015
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Net income attributable to noncontrolling interest		2,883		2,977		8,586		8,586
Net income/(loss) attributable to controlling interest		64,752		60,355		172,202		37,298
Preferred stock dividends		1,550		1,550		4,650		4,650
Net income/(loss) available to common shareholders	$	63,202	$	58,805	$	167,552	$	32,648
Weighted average common shares outstanding - basic		231,856		233,111		232,690		232,910
Effect of dilutive securities		2,236		1,947		2,085		1,928
Weighted average common shares outstanding - diluted		234,092		235,058		234,775		234,838
Net income/(loss) per share available to common shareholders	$	0.27	$	0.25	$	0.72	$	0.14
Diluted income/(loss) per share available to common shareholders	$	0.27	$	0.25	$	0.71	$	0.14

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met:

	Three Months Ended September 30				Nine Months Ended September 30
(Shares in thousands)	2016		2015		2016		2015
Anti-dilutive stock options		2,793		3,569		2,996		3,559
Weighted average exercise price of anti-dilutive stock options	$	24.95	$	24.22	$	25.21	$	24.46
Anti-dilutive other equity awards		371		124		51		58

33

Note 10 – Contingencies and Other Disclosures

CONTINGENCIES

Contingent Liabilities Overview

Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHN’s current or former lines of business. Certain matters of that sort are pending at this time, and FHN is cooperating in those matters. Pending and threatened litigation matters sometimes are resolved in court or before an arbitrator, and sometimes are settled by the parties. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the ultimate resolution of these matters may be, or what the eventual loss or impact related to each matter may be. FHN establishes a loss contingency liability for a litigation matter when loss is both probable and reasonably estimable as prescribed by applicable financial accounting guidance. If loss for a matter is probable and a range of possible loss outcomes is the best estimate available, accounting guidance requires a liability to be established at the low end of the range.

Based on current knowledge, and after consultation with counsel, management is of the opinion that loss contingencies related to threatened or pending litigation matters should not have a material adverse effect on the consolidated financial condition of FHN, but may be material to FHN’s operating results for any particular reporting period depending, in part, on the results from that period.

Material Loss Contingency Matters

As used in this Note, “material loss contingency matters” generally fall into at least one of the following categories: (i) FHN has determined material loss to be probable and has established a material loss liability in accordance with applicable financial accounting guidance, other than matters reported as having been substantially settled or otherwise substantially resolved; (ii) FHN has determined material loss to be probable but is not reasonably able to estimate an amount or range of material loss liability; or (iii) FHN has determined that material loss is not probable but is reasonably possible, and that the amount or range of that reasonably possible material loss is estimable. As defined in applicable accounting guidance, loss is reasonably possible if there is more than a remote chance of a material loss outcome for FHN. Set forth below are disclosures for certain pending or threatened litigation matters, including all matters mentioned in (i) or (ii) and certain matters mentioned in (iii). In addition, certain other matters, or groups of matters, are discussed relating to FHN’s former mortgage origination and servicing businesses. In all litigation matters discussed, unless settled or otherwise resolved, FHN believes it has meritorious defenses and intends to pursue those defenses vigorously.

FHN reassesses the liability for litigation matters each quarter as the matters progress. At September 30, 2016, the aggregate amount of liabilities established for all such loss contingency matters was $39.9 million. These liabilities are separate from those discussed under the heading “Repurchase and Foreclosure Liability” below.

In each material loss contingency matter, except as otherwise noted, there is more than a remote chance that any of the following outcomes will occur: the plaintiff will substantially prevail; the defense will substantially prevail; the plaintiff will prevail in part; or the matter will be settled by the parties. At September 30, 2016, FHN estimates that for all material loss contingency matters, estimable reasonably possible losses in future periods in excess of currently established liabilities could aggregate in a range from zero to approximately $70 million.

As a result of the general uncertainties discussed above and the specific uncertainties discussed for each matter mentioned below, it is possible that the ultimate future loss experienced by FHN for any particular matter may materially exceed the amount, if any, of currently established liability for that matter. That possibility exists both for matters included in the estimated reasonably possible loss (“RPL”) range mentioned above and for matters not included in that range.

Certain Matters Included in RPL Range

RPL-Included FH Proprietary Securitization Matters. FHN, along with multiple co-defendants, is defending lawsuits brought by investors which claim that the offering documents under which certificates relating to First Horizon branded securitizations were sold to them were materially deficient. For two of those matters, FHN can estimate reasonably possible loss in excess of established liabilities: (1) Federal Deposit Insurance Corporation (“FDIC”) as receiver for Colonial Bank, in the U.S. District Court for the Middle District of Alabama (Case No. CV-12-791-WKW-WC); and (2) FDIC as receiver for Colonial Bank, in the U.S. District Court for the

34

Note 10 – Contingencies and Other Disclosures (Continued)

Southern District of New York (Case No. 12 Civ. 6166 (LLS)(MHD)). The plaintiff in those suits claims to have purchased (and later sold) certificates in a number of separate securitizations and demands damages and prejudgment interest, among several remedies sought. The RPL estimates for these matters are subject to significant uncertainties regarding: the dollar amounts claimed; the potential remedies that might be available or awarded; the outcome of any settlement discussions; the ultimate outcome of potentially significant motions; the availability of significantly dispositive defenses; and the incomplete status of the discovery process. FDIC’s claims relate to alleged purchases totaling $145.7 million. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Material Matter Excluded from RPL Range due to Proposed Settlement

Debit Transaction Sequencing Litigation Matter. FTBNA is a defendant in a putative class action lawsuit concerning overdraft fees charged in connection with debit card transactions. A key claim is that the method used to order or sequence the transactions posted each day was improper. The case is styled as Hawkins v. First Tennessee Bank National Association, before the Circuit Court for Shelby County, Tennessee, Case No. CT-004085-11. In July 2016 FHN and the plaintiff submitted a notice of proposed settlement to the court, which later received preliminary approval by the court. The proposed settlement remains subject to an extended approval process which FHN estimates will be completed in the first half of 2017. The material loss contingency liability mentioned above includes an amount for this matter based on FHN’s assessment of the settlement.

Legacy Mortgage Matters Excluded from RPL Range

As mentioned above, FHN is directly defending two lawsuits which claim that the offering documents under which certificates relating to securitizations were sold were materially deficient. Underwriters are co-defendants and have demanded, under provisions in the applicable underwriting agreements, that FHN indemnify them for their expenses and any losses they may incur. In addition, FHN has received indemnity demands from underwriters in certain other suits as to which investors claim to have purchased certificates in FH proprietary securitizations but as to which FHN has not been named a defendant. The material loss contingency liability mentioned above includes an amount for an indemnity matter which FHN recently settled with the claimant; that settlement now is completed but had not yet been paid at quarter-end.

For the two pending lawsuits FHN is able to estimate RPL, as mentioned above. For the pending indemnity claims FHN is unable to estimate an RPL range due to significant uncertainties regarding: claims as to which the claimant specifies no dollar amount; the potential remedies that might be available or awarded; the availability of significantly dispositive defenses such as statutes of limitations or repose; the outcome of potentially dispositive early-stage motions such as motions to dismiss; the incomplete status of the discovery process; the lack of a precise statement of damages; and lack of precedent claims. The alleged purchase prices of the certificates subject to pending indemnification claims total $409.9 million.

FHN has additional potential exposures related to its former mortgage businesses. A few of those matters have become litigation which FHN currently estimates are immaterial, some are non-litigation claims or threats, some are mere requests for information, and in some areas FHN has no indication of any active or threatened dispute. Some of those matters might eventually result in loan repurchases or make-whole payments and could be included in the repurchase liability discussed below, and some might eventually result in litigation liability, but none are included in the material loss contingency liabilities mentioned above. None are included in the RPL range mentioned above. Additional information concerning such exposures is provided below in “Obligations from Legacy Mortgage Businesses.”

Material Gain Contingency Matter

In second quarter 2015 FHN reached an agreement with DOJ and HUD to settle potential claims related to FHN’s underwriting and origination of loans insured by FHA. Under that agreement FHN paid $212.5 million. FHN believes that certain insurance policies, having an aggregate policy limit of $75 million, provide coverage for FHN’s losses and related costs. The insurers have denied and/or reserved rights to deny coverage. FHN has brought suit against the insurers to enforce the policies under Tennessee law. In connection with this litigation the previously recognized expenses associated with the settled matter may be recouped in part. Under applicable financial accounting guidance FHN has determined that although material gain from this litigation is not probable, there is a reasonably possible (more than remote) chance of a material gain outcome for FHN. FHN cannot determine a probable outcome that may result from this matter because of the uncertainty of the potential outcomes of the legal proceedings and also due to significant uncertainties regarding: legal interpretation of the relevant contracts; potential remedies that might be available or awarded; the ultimate effect of counterclaims asserted by the defendants; and incomplete discovery. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

35

Note 10 – Contingencies and Other Disclosures (Continued)

Obligations from Legacy Mortgage Businesses

Several matters mentioned above stem from FHN’s former mortgage origination and servicing businesses. FHN retains potential for further exposure, in addition to those matters, from those former businesses. The remainder of this “Contingencies” section provides context and other information to enhance an understanding of those matters and exposures.

Overview

Prior to September 2008 FHN originated loans through its legacy mortgage business, primarily first lien home loans, with the intention of selling them. Sales typically were effected either as non-recourse whole-loan sales or through non-recourse proprietary securitizations. Conventional conforming single-family residential mortgage loans were sold predominately to two GSEs: Fannie Mae and Freddie Mac. Also, federally insured or guaranteed whole loans were pooled, and payments to investors were guaranteed through Ginnie Mae. Many mortgage loan originations, especially nonconforming mortgage loans, were sold to investors, or certificate-holders, predominantly through FH proprietary securitizations but also, to a lesser extent, through other whole loans sold to private non-Agency purchasers. FHN used only one trustee for all of its FH proprietary securitizations. FHN also originated mortgage loans eligible for FHA insurance or VA guaranty. In addition, FHN originated and sold HELOCs and second lien mortgages through other whole loans sold to private purchasers and, to a lesser extent, through FH proprietary securitizations. Currently, only one FH securitization of HELOCs remains outstanding.

For non-recourse loan sales, FHN has exposure for repurchase of loans, make-whole damages, or other related damages, arising from claims that FHN breached its representations and warranties made at closing to the purchasers, including GSEs, other whole loan purchasers, and the trustee of FH proprietary securitizations.

During the time these legacy activities were conducted, FHN frequently sold mortgage loans “with servicing retained.” As a result, FHN accumulated substantial amounts of MSR on its balance sheet, as well as contractual servicing obligations and related deposits and receivables. FHN conducted a significant servicing business under its First Horizon Home Loans brand.

MI was required by GSE rules for certain of the loans sold to GSEs and was also provided for certain of the loans that were securitized. MI generally was provided for first lien loans sold or securitized having an LTV ratio at origination of greater than 80 percent.

In 2007, market conditions deteriorated to the point where mortgage-backed securitizations no longer could be sold economically; FHN’s last securitization occurred that year. FHN continued selling mortgage loans to GSEs until August 31, 2008, when FHN sold its national mortgage origination and servicing platforms along with a portion of its servicing assets and obligations. FHN contracted to have its remaining servicing obligations sub-serviced. Since the platform sale FHN has sold substantially all remaining servicing assets and obligations.

Certain mortgage-related terms used in this “Contingencies” section are defined in “Mortgage-Related Glossary” at the end of this Overview.

Repurchase and Make-Whole Obligations

Starting in 2009, FHN received a high number of claims either to repurchase loans from the purchaser or to pay the purchaser to “make them whole” for economic losses incurred. These claims have been driven primarily by loan delinquencies. In repurchase or make-whole claims a loan purchaser typically asserts that specified loans violated representations and warranties FHN made when the loans were sold. A significant majority of claims received overall have come from GSEs, and the remainder are from purchasers of other whole loan sales. FHN has not received a loan repurchase or make-whole claim from the FH proprietary securitization trustee.

Generally, FHN reviews each claim and MI cancellation notice individually. Those responses include appeal, provide additional information, deny the claim (rescission), repurchase the loan or remit a make-whole payment, or reflect cancellation of MI.

After several years resolving repurchase and make-whole claims with each GSE on a loan-by-loan basis, in 2013 and 2014 FHN entered into DRAs with the GSEs, resolving at once a large fraction of pending and potential future claims. Starting in 2014, the overall number of such claims diminished substantially, primarily as a result of the DRAs. Each DRA resolved obligations associated with loans originated from 2000 to 2008, but certain obligations and loans were excluded. Under each DRA, FHN remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of the GSE’s Charter Act) and FHN continues to have loan repurchase or monetary compensation obligations under the DRAs related to private mortgage insurance rescissions, cancellations, and denials (with certain exceptions). FHN also has exposure related to loans where there has been a prior bulk sale of servicing, as well as certain other whole-loan sales. With respect to loans where there has been a prior bulk sale of servicing, FHN is not responsible for MI cancellations and denials to the extent attributable to the acts of the current servicer.

36

Note 10 – Contingencies and Other Disclosures (Continued)

While large portions of repurchase claims from the GSEs were settled with the DRAs, large-scale settlement with non-Agency claimants is not practical. Those claims are resolved case by case or, occasionally, with less-comprehensive settlements. In second quarter 2016, in the largest such settlement to date, FHN settled certain repurchase claims which reduced the repurchase and foreclosure liability and resulted in a reversal of certain prior provision expense. Repurchase claims that are not resolved by the parties could become litigation.

FH Proprietary Securitization Actions

FHN has potential financial exposure from FH proprietary securitizations outside of the repurchase/make-whole process. Several investors in certificates sued FHN and others starting in 2009, and several underwriters or other counterparties have demanded that FHN indemnify and defend them in securitization lawsuits. The pending suits generally assert that disclosures made to investors in the offering and sale of certificates were legally deficient.

Servicing Obligations

FHN’s national servicing business was sold as part of the platform sale in 2008. A significant amount of MSR was sold at that time, and a significant amount was retained. The related servicing activities, including foreclosure and loss mitigation practices, not sold in 2008 were outsourced through a three-year subservicing arrangement (the “2008 subservicing agreement”) with the platform buyer (the “2008 subservicer”). The 2008 subservicing agreement expired in 2011 when FHN entered into a replacement agreement with a new subservicer (the “2011 subservicer”). In fourth quarter 2013, FHN contracted to sell a substantial majority of its remaining servicing obligations and servicing assets (including advances) to the 2011 subservicer. The servicing was transferred to the buyer in stages, and was substantially completed in first quarter 2014. The servicing still retained by FHN continues to be subserviced.

As servicer, FHN had contractual obligations to the owners of the loans, primarily GSEs and securitization trustees, to handle billing, custodial, and other tasks related to each loan. Each subservicer undertook to perform those obligations on FHN’s behalf during the applicable subservicing period, although FHN legally remained the servicer of record for those loans that were subserviced.

The 2008 subservicer has been subject to a consent decree, and entered into a settlement agreement with regulators related to alleged deficiencies in servicing and foreclosure practices. The 2008 subservicer has made demands of FHN, under the 2008 subservicing agreement, to pay certain resulting costs and damages totaling $43.5 million. FHN disagrees with those demands and has made no payments. This disagreement has the potential to result in litigation and, in any such future litigation, the claim against FHN may be substantial.

A certificate holder has contacted FHN, threatening to make claims based on alleged deficiencies in servicing loans held in certain FH proprietary securitization trusts. FHN cannot predict how this inquiry will proceed nor whether any claim or suit, if made or brought, will be material to FHN.

Origination Data

From 2005 through 2008, FHN originated and sold $69.5 billion of mortgage loans to the Agencies. This includes $57.6 billion of loans sold to GSEs and $11.9 billion of loans guaranteed by Ginnie Mae. Although FHN conducted these businesses before 2005, GSE loans originated in 2005 through 2008 account for a substantial majority of all repurchase requests/make-whole claims received since the 2008 platform sale.

From 2005 through 2007, $26.7 billion of mortgage loans were included in FH proprietary securitizations.

37

Note 10 – Contingencies and Other Disclosures (Continued)

Mortgage-Related Glossary
Agencies	the two GSEs and Ginnie Mae	HELOC	home equity line of credit
certificates	securities sold to investors representing interests in mortgage loan securitizations	HUD	Dept. of Housing and Urban Development
DOJ	U.S. Department of Justice	LTV	loan-to-value, a ratio of the loan amount divided by the home value
DRA	definitive resolution agreement with a GSE	MI	private mortgage insurance, insuring against borrower payment default
Fannie Mae, Fannie, FNMA	Federal National Mortgage Association	MSR	mortgage servicing rights
FH proprietary securitization	securitization of mortgages sponsored by FHN under its First Horizon brand	nonconforming loans	loans that did not conform to Agency program requirements
FHA	Federal Housing Administration	other whole loans sold	mortgage loans sold to private, non-Agency purchasers
Freddie Mac, Freddie, FHLMC	Federal Home Loan Mortgage Corporation	2008 platform sale, platform sale, 2008 sale	FHN’s sale of its national mortgage origination and servicing platforms in 2008
Ginnie Mae, Ginnie, GNMA	Government National Mortgage Association	pipeline or active pipeline	pipeline of mortgage repurchase, make-whole, & certain related claims against FHN
GSEs	Fannie Mae and Freddie Mac	VA	Veterans Administration

Repurchase and Foreclosure Liability

The repurchase and foreclosure liability is comprised of reserves to cover estimated loss content in the active pipeline, estimated future inflows, as well as estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision.

Based on currently available information and experience to date, FHN has evaluated its loan repurchase, make-whole, and certain related exposures and has accrued for losses of $67.6 million and $115.5 million as of September 30, 2016 and 2015, respectively, including a smaller amount related to equity-lending junior lien loan sales. Accrued liabilities for FHN’s estimate of these obligations are reflected in Other liabilities on the Consolidated Condensed Statements of Condition. Charges/expense reversals to increase/decrease the liability are included within Repurchase and foreclosure provision on the Consolidated Condensed Statements of Income. The estimates are based upon currently available information and fact patterns that exist as of the balance sheet dates and could be subject to future changes. Changes to any one of these factors could significantly impact the estimate of FHN’s liability.

Government-Backed Mortgage Lending Programs

FHN’s FHA and VA program lending was substantial prior to the 2008 platform sale, and has continued at a much lower level since then. As lender, FHN made certain representations and warranties as to the compliance of the loans with program requirements. Over the past several years, most recently in first quarter 2015, FHN occasionally has recognized significant losses associated with settling claims and potential claims by government agencies, and by private parties asserting claims on behalf of agencies, related to these origination activities. At September 30, 2016, FHN had not accrued a liability for any matter related to these government lending programs, and no pending or known threatened matter related to these programs represented a material loss contingency described above.

Other FHN Mortgage Exposures

At September 30, 2016, FHN had not accrued a liability for exposure for repurchase of first-lien loans related to FH proprietary securitizations arising from claims from the trustee that FHN breached its representations and warranties in FH proprietary securitizations at closing. FHN’s trustee is a defendant in a lawsuit in which the plaintiffs have asserted that the trustee has duties to review loans and otherwise to act against FHN outside of the duties specified in the applicable trust documents; FHN is not a defendant in that suit and is not able to assess what, if any, exposure FHN may have as a result of it.

38

Note 10 – Contingencies and Other Disclosures (Continued)

FHN is defending, directly or as indemnitor, certain pending lawsuits brought by purchasers of certificates in FH proprietary securitizations or their assignees. FHN believes a new lawsuit based on federal securities claims that offering disclosures were deficient cannot be brought at this time due to the running of applicable limitation periods, but other investor claims, based on other legal theories, might still be possible. Due to the sales of MSR from 2008 through 2014, FHN has limited visibility into current loan information such as principal payoffs, refinance activity, delinquency trends, and loan modification activity.

Many non-GSE purchasers of whole loans from FHN included those loans in their own securitizations. Regarding such other whole loans sold, FHN made representations and warranties concerning the loans and provided indemnity covenants to the purchaser/securitizer. Typically the purchaser/securitizer assigned key contractual rights against FHN to the securitization trustee. As mentioned above, repurchase and make-whole claims related to specific loans are included in the active pipeline and repurchase reserve. In addition, currently the following categories of actions are pending which involve FHN and other whole loans sold: (i) FHN has received indemnification requests from purchasers of loans or their assignees in cases where FHN is not a defendant; (ii) FHN has received subpoenas seeking loan reviews in cases where FHN is not a defendant; (iii) FHN has received repurchase demands from purchasers or their assignees; and (iv) FHN is a defendant in legal actions involving FHN-originated loans. At September 30, 2016, FHN had not accrued a liability for any litigation matter related to other whole loans sold; however, FHN’s repurchase and foreclosure liability considered certain known exposures from other whole loans sold.

Certain government entities have subpoenaed information from FHN and others. These entities include the FDIC (on behalf of certain failed banks) and the FHLBs of San Francisco, Atlanta, and Seattle, among others. These entities purport to act on behalf of several purchasers of FH proprietary securitizations, and of non-FH securitizations which included other whole loans sold. Collectively, the subpoenas seek information concerning: a number of FH proprietary securitizations and/or underlying loan originations; and originations of certain other whole loans sold which, in many cases, were included by the purchaser in its own securitizations. Some subpoenas fail to identify the specific investments made or loans at issue. Moreover, FHN has limited information regarding at least some of the loans under review. Unless and until a review (if related to specific loans) becomes an identifiable repurchase claim, the associated loans are not considered part of the active pipeline.

OTHER DISCLOSURES

Visa Matters

FHN is a member of the Visa USA network. In October 2007, the Visa organization of affiliated entities completed a series of global restructuring transactions to combine its affiliated operating companies, including Visa USA, under a single holding company, Visa Inc. (“Visa”). Upon completion of the reorganization, the members of the Visa USA network remained contingently liable for certain Visa litigation matters (the “Covered Litigation”). Based on its proportionate membership share of Visa USA, FHN recognized a contingent liability in fourth quarter 2007 related to this contingent obligation. In March 2008, Visa completed its initial public offering (“IPO”) and funded an escrow account from its IPO proceeds to be used to make payments related to the Visa litigation matters. FHN received approximately 2.4 million Class B shares in conjunction with Visa’s IPO.

Conversion of these shares into Class A shares of Visa is prohibited until the final resolution of the covered litigation. In conjunction with the prior sales of Visa Class B shares in December 2010 and September 2011, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. The conversion ratio is adjusted when Visa deposits funds into the escrow account to cover certain litigation. As of September 30, 2016 and 2015, the derivative liabilities were $6.5 million and $4.8 million, respectively.

In July 2012, Visa and MasterCard announced a joint settlement (the “Settlement”) related to the Payment Card Interchange matter, one of the Covered Litigation matters. Based on the amount of the Settlement attributable to Visa and an assessment of FHN’s contingent liability accrued for Visa litigation matters, the Settlement did not have a material impact on FHN. The Settlement was vacated upon appeal in June 2016. Accordingly, the outcome of this matter remains uncertain. Additionally, other Covered Litigation matters are also pending judicial resolution, including new matters filed by class members who opted out of the Settlement. So long as any Covered Litigation matter remains pending, FHN’s ability to transfer its Visa holdings is restricted, with limited exceptions.

FHN now holds approximately 1.1 million Visa Class B shares. FHN’s Visa shares are not considered to be marketable and therefore are included in the Consolidated Condensed Statements of Condition at their historical cost of $0. As of September 30, 2016, the conversion ratio is 165 percent reflecting a Visa stock split in March 2015, and the contingent liability is $.8 million. Future funding of the escrow would dilute this conversion ratio by an amount that is not determinable at present. Based on the closing price on September 30, 2016, assuming conversion into Class A shares at the current conversion ratio, FHN’s Visa holdings would have a value of approximately $151 million. Recognition of this value is dependent upon the final resolution of the remainder of Visa’s Covered Litigation matters without further reduction of the conversion ratio.

39

Note 10 – Contingencies and Other Disclosures (Continued)

Indemnification Agreements and Guarantees

In the ordinary course of business, FHN enters into indemnification agreements for legal proceedings against its directors and officers and standard representations and warranties for underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, and various other business transactions or arrangements. The extent of FHN’s obligations under these agreements depends upon the occurrence of future events; therefore, it is not possible to estimate a maximum potential amount of payouts that could be required with such agreements.

40

Note 11 – Pension, Savings, and Other Employee Benefits

Pension plan. FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are “frozen” so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN contributed $165 million to the qualified pension plan in third quarter 2016. The contribution had no effect on FHN’s Consolidated Condensed Statements of Income. There were no contributions to the qualified pension plan in 2015.

FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $4.9 million for 2015. FHN estimates that by the end of 2016, $5.2 million will have been contributed to the non-qualified plans in 2016.

Savings plan. FHN provides all qualifying full-time employees with the opportunity to participate in the FHN tax qualified 401(k) savings plan. The qualified plan allows employees to defer receipt of earned salary, up to tax law limits, on a tax-advantaged basis. Accounts, which are held in trust, may be invested in a wide range of mutual funds and in FHN common stock. Up to tax law limits, FHN provides a 100 percent match for the first 6 percent of salary deferred, with company matching contributions invested according to a participant’s current investment elections. Through a non-qualified savings restoration plan, FHN provides a restorative benefit to certain highly-compensated employees who participate in the savings plan and whose contribution elections are capped by tax limitations.

Other employee benefits. FHN provides postretirement life insurance benefits to certain employees and also provides postretirement medical insurance benefits to retirement-eligible employees. The postretirement medical plan is contributory with FHN contributing a fixed amount for certain participants. FHN’s postretirement benefits include certain prescription drug benefits. In third quarter 2015, FHN notified participants of revisions to the retiree medical plan effective January 1, 2016. In conjunction with this action, FHN recognized an $8.3 million curtailment gain in third quarter 2015. FHN also recognized a $1.0 million reduction in the plans’ projected benefit obligation and a $5.3 million tax-effected adjustment to accumulated other comprehensive income.

41

Note 11 – Pension, Savings, and Other Employee Benefits (Continued)

The components of net periodic benefit cost for the three months ended September 30 are as follows:

	Pension Benefits						Other Benefits
(Dollars in thousands)	2016			2015			2016			2015
Components of net periodic benefit cost
Service cost	$	10		$	10		$	28		$	37
Interest cost		7,648			9,278			335			342
Expected return on plan assets		(9,797	)		(9,354	)		(227	)		(243	)
Amortization of unrecognized:
Prior service cost/(credit)		48			84			43			(291	)
Actuarial (gain)/loss		1,971			2,786			(143	)		(334	)
Net periodic benefit cost/(credit)	$	(120	)	$	2,804		$	36		$	(489	)
ASC 715 curtailment gain		—			—			—			(8,283	)
Total periodic benefit cost/(credit)	$	(120	)	$	2,804		$	36		$	(8,772	)

The components of net periodic benefit cost for the nine months ended September 30 are as follows:

	Pension Benefits						Other Benefits
(Dollars in thousands)	2016			2015			2016			2015
Components of net periodic benefit cost
Service cost	$	30		$	30		$	83		$	112
Interest cost		23,412			27,318			969			1,062
Expected return on plan assets		(29,342	)		(28,137	)		(685	)		(726	)
Amortization of unrecognized:
Prior service cost/(credit)		147			250			128			(873	)
Actuarial (gain)/loss		6,106			7,577			(608	)		(822	)
Net periodic benefit cost/(credit)	$	353		$	7,038		$	(113	)	$	(1,247	)
ASC 715 curtailment gain		—			—			—			(8,283	)
Total periodic benefit cost/(credit)	$	353		$	7,038		$	(113	)	$	(9,530	)

In 2016, FHN changed its methodology for the calculation of interest cost for its applicable employee benefit plans. Prior to 2016 FHN utilized a weighted average discount rate to determine interest cost, which is the same discount rate used to calculate the projected benefit obligation. Starting in 2016, FHN has adopted a spot rate approach which applies duration-specific rates from the full yield curve to estimated future benefit payments for the determination of interest cost. This change in accounting estimate is expected to reduce annual interest cost across all plans by $5.8 million in 2016.

42

Note 12 – Business Segment Information

FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and other selected markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, and cash management. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions nationally. The fixed income segment consists of fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, gains on the extinguishment of debt, and acquisition-related costs. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following table reflects the amounts of consolidated revenue, expense, tax, and assets for each segment for the three and nine months ended September 30:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in thousands)	2016		2015		2016		2015
Consolidated
Net interest income	$	185,195	$	163,562	$	533,533	$	487,068
Provision for loan losses		4,000		1,000		11,000		8,000
Noninterest income		148,545		125,103		428,364		385,093
Noninterest expense		233,558		215,436		687,307		810,051
Income/(loss) before income taxes		96,182		72,229		263,590		54,110
Provision/(benefit) for income taxes		28,547		8,897		82,802		8,226
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Average assets	$	27,609,702	$	25,312,903	$	27,021,137	$	25,454,266

Certain previously reported amounts have been reclassified to agree with current presentation.

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Note 12 – Business Segment Information (Continued)

	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in thousands)	2016			2015			2016			2015
Regional Banking
Net interest income	$	190,510		$	165,253		$	541,144		$	485,564
Provision/(provision credit) for loan losses		8,544			6,696			34,194			28,689
Noninterest income		65,128			62,763			185,679			188,942
Noninterest expense		144,972			135,589			454,638			415,026
Income/(loss) before income taxes		102,122			85,731			237,991			230,791
Provision/(benefit) for income taxes		37,095			30,876			84,976			82,458
Net income/(loss)	$	65,027		$	54,855		$	153,015		$	148,333
Average assets	$	17,582,996		$	14,989,007		$	16,704,503		$	14,748,349
Fixed Income
Net interest income	$	2,412		$	3,003		$	8,225		$	11,616
Noninterest income		72,073			51,757			217,278			169,323
Noninterest expense		59,575			59,844			181,124			165,836
Income/(loss) before income taxes		14,910			(5,084	)		44,379			15,103
Provision/(benefit) for income taxes		5,459			(2,384	)		16,089			4,914
Net income/(loss)	$	9,451		$	(2,700	)	$	28,290		$	10,189
Average assets	$	2,305,968		$	2,190,624		$	2,348,619		$	2,350,786
Corporate
Net interest income/(expense)	$	(18,195	)	$	(19,027	)	$	(48,409	)	$	(52,467	)
Noninterest income		5,134			8,559			15,766			17,845
Noninterest expense		14,841			11,804			44,392			40,207
Income/(loss) before income taxes		(27,902	)		(22,272	)		(77,035	)		(74,829	)
Provision/(benefit) for income taxes		(16,739	)		(24,946	)		(40,833	)		(52,640	)
Net income/(loss)	$	(11,163	)	$	2,674		$	(36,202	)	$	(22,189	)
Average assets	$	5,880,090		$	5,886,929		$	6,024,553		$	5,951,999
Non-Strategic
Net interest income	$	10,468		$	14,333		$	32,573		$	42,355
Provision/(provision credit) for loan losses		(4,544	)		(5,696	)		(23,194	)		(20,689	)
Noninterest income		6,210			2,024			9,641			8,983
Noninterest expense		14,170			8,199			7,153			188,982
Income/(loss) before income taxes		7,052			13,854			58,255			(116,955	)
Provision/(benefit) for income taxes		2,732			5,351			22,570			(26,506	)
Net income/(loss)	$	4,320		$	8,503		$	35,685		$	(90,449	)
Average assets	$	1,840,648		$	2,246,343		$	1,943,462		$	2,403,132

Certain previously reported amounts have been reclassified to agree with current presentation.

44

Note 13 – Variable Interest Entities

ASC 810 defines a VIE as a legal entity where (a) the equity investors, as a group, lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, (b) the equity investors, as a group, lack either, (1) the power through voting rights, or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance, (2) the obligation to absorb the expected losses of the entity, or (3) the right to receive the expected residual returns of the entity, or (c) the entity is structured with non-substantive voting rights. A variable interest is a contractual ownership, or other interest, that fluctuates with changes in the fair value of the VIE’s net assets exclusive of variable interests. Under ASC 810, as amended, a primary beneficiary is required to consolidate a VIE when it has a variable interest in a VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant.

Consolidated Variable Interest Entities

FHN holds variable interests in a proprietary HELOC securitization trust it established as a source of liquidity for consumer lending operations. Based on its restrictive nature, the trust is considered a VIE as the holders of equity at risk do not have the power through voting rights or similar rights to direct the activities that most significantly impact the trust’s economic performance. The retention of MSR and a residual interest results in FHN potentially absorbing losses or receiving benefits that are significant to the trust. FHN is considered the primary beneficiary, as it is assumed to have the power, as Master Servicer, to most significantly impact the activities of the VIE. Consolidation of the trust results in the recognition of the trust proceeds as restricted borrowings since the cash flows on the securitized loans can only be used to settle the obligations due to the holders of trust securities. Through first quarter 2016 the trust experienced a rapid amortization period and FHN was obligated to provide subordinated funding. During the period, cash payments from borrowers were accumulated to repay outstanding debt securities while FHN continued to make advances to borrowers when they drew on their lines of credit. FHN then transferred the newly generated receivables into the securitization trust. FHN is reimbursed for these advances only after other parties in the securitization have received all of the cash flows to which they are entitled. If loan losses requiring draws on the related monoline insurers’ policies (which protect bondholders in the securitization) exceed a certain level, FHN may not receive reimbursement for all of the funds advanced to borrowers, as the senior bondholders and the monoline insurers typically have priority for repayment. Amounts funded from monoline insurance policies are considered restricted term borrowings in FHN’s Consolidated Condensed Statements of Condition. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trust, the creditors of the trust hold no recourse to the assets of FHN.

FHN has established certain rabbi trusts related to deferred compensation plans offered to its employees. FHN contributes employee cash compensation deferrals to the trusts and directs the underlying investments made by the trusts. The assets of these trusts are available to FHN’s creditors only in the event that FHN becomes insolvent. These trusts are considered VIEs as there is no equity at risk in the trusts since FHN provided the equity interest to its employees in exchange for services rendered. FHN is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities that most significantly impact the economic performance of the rabbi trusts through its ability to direct the underlying investments made by the trusts. Additionally, FHN could potentially receive benefits or absorb losses that are significant to the trusts due to its right to receive any asset values in excess of liability payoffs and its obligation to fund any liabilities to employees that are in excess of a rabbi trust’s assets.

45

Note 13 – Variable Interest Entities (Continued)

The following table summarizes VIEs consolidated by FHN as of September 30, 2016 and 2015:

	September 30, 2016				September 30, 2015
	On-Balance Sheet Consumer Loan Securitization		Rabbi Trusts Used for Deferred Compensation Plans		On-Balance Sheet Consumer Loan Securitization		Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands)	Carrying Value		Carrying Value		Carrying Value		Carrying Value
Assets:
Cash and due from banks	$	127		N/A	$	2,000		N/A
Loans, net of unearned income		38,519		N/A		59,258		N/A
Less: Allowance for loan losses		588		N/A		54		N/A
Total net loans		37,931		N/A		59,204		N/A
Other assets		286	$	72,916		114	$	66,490
Total assets	$	38,344	$	72,916	$	61,318	$	66,490
Liabilities:
Term borrowings	$	26,062		N/A	$	48,491		N/A
Other liabilities		3	$	53,429		3	$	49,275
Total liabilities	$	26,065	$	53,429	$	48,494	$	49,275

Nonconsolidated Variable Interest Entities

Low Income Housing Partnerships. First Tennessee Housing Corporation (“FTHC”), a wholly-owned subsidiary of FTBNA, makes equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants generally within FHN’s primary geographic region. LIHTC partnerships are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the LIHTC partnerships as it has a risk of loss for its capital contributions and funding commitments to each partnership. The general partners are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

FHN accounts for all qualifying LIHTC investments under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense/(benefit). LIHTC investments that do not qualify for the proportional amortization method are accounted for using the equity method. Expenses associated with these investments were not significant for the three or nine months ended September 30, 2016 and 2015. The following table summarizes the impact to the Provision/(benefit) for income taxes on the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2016 and 2015 for LIHTC investments accounted for under the proportional amortization method.

	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in thousands)	2016			2015			2016			2015
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	5,445		$	2,293		$	10,073		$	6,653
Low income housing tax credits		(2,615	)		(2,363	)		(7,672	)		(7,089	)
Other tax benefits related to qualifying LIHTC investments		(6,131	)		(819	)		(8,310	)		(2,418	)

46

Note 13 – Variable Interest Entities (Continued)

Other Tax Credit Investments. First Tennessee New Markets Corporation (“FTNMC”), a wholly-owned subsidiary of FTBNA, makes equity investments through wholly-owned subsidiaries as a non-managing member in various limited liability companies (“LLCs”) that sponsor community development projects utilizing the New Market Tax Credit (“NMTC”) pursuant to Section 45 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the LLCs include providing investment capital for low-income communities within FHN’s primary geographic region. A portion of the funding of FTNMC’s investment in a NMTC LLC is obtained via a loan from an unrelated third-party that is typically a community development enterprise. The NMTC LLCs are considered VIEs as FTNMC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. While FTNMC could absorb losses that are significant to the NMTC LLCs as it has a risk of loss for its initial capital contributions, the managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the NMTC LLCs’ economic performance and the managing members are exposed to all losses beyond FTNMC’s initial capital contributions.

FTHC also makes equity investments as a limited partner or non-managing member in entities that receive Historic Tax Credits pursuant to Section 47 of the Internal Revenue Code. The purpose of these entities is the rehabilitation of historic buildings with the tax credits provided to incent private investment in the historic cores of cities and towns. These entities are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the entities as it has a risk of loss for its capital contributions and funding commitments to each partnership. The managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

Small Issuer Trust Preferred Holdings. FTBNA holds variable interests in trusts which have issued mandatorily redeemable preferred capital securities (“trust preferreds”) for smaller banking and insurance enterprises. FTBNA has no voting rights for the trusts’ activities. The trusts’ only assets are junior subordinated debentures of the issuing enterprises. The creditors of the trusts hold no recourse to the assets of FTBNA. These trusts meet the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. Based on the nature of the trusts’ activities and the size of FTBNA’s holdings, FTBNA could potentially receive benefits or absorb losses that are significant to the trusts regardless of whether a majority of a trust’s securities are held by FTBNA. However, since FTBNA is solely a holder of the trusts’ securities, it has no rights which would give it the power to direct the activities that most significantly impact the trusts’ economic performance and thus it is not considered the primary beneficiary of the trusts. FTBNA has no contractual requirements to provide financial support to the trusts.

On-Balance Sheet Trust Preferred Securitization. In 2007, FTBNA executed a securitization of certain small issuer trust preferreds for which the underlying trust meets the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entity’s economic performance. FTBNA could potentially receive benefits or absorb losses that are significant to the trust based on the size and priority of the interests it retained in the securities issued by the trust. However, since FTBNA did not retain servicing or other decision making rights, FTBNA is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the trust’s economic performance. Accordingly, FTBNA has accounted for the funds received through the securitization as a term borrowing in its Consolidated Condensed Statements of Condition. FTBNA has no contractual requirements to provide financial support to the trust.

Proprietary Residential Mortgage Securitizations. FHN holds variable interests in proprietary residential mortgage securitization trusts it established prior to 2008 as a source of liquidity for its mortgage banking operations. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trusts, the creditors of the trusts hold no recourse to the assets of FHN. Additionally, FHN has no contractual requirements to provide financial support to the trusts. Based on their restrictive nature, the trusts are considered VIEs as the holders of equity at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. While FHN is assumed to have the power as servicer to most significantly impact the activities of such VIEs, in situations where FHN does not have the ability to participate in significant portions of a securitization trust’s cash flows, FHN is not considered the primary beneficiary of the trust. Therefore, these trusts are not consolidated by FHN.

47

Note 13 – Variable Interest Entities (Continued)

Holdings & Short Positions in Agency Mortgage-Backed Securities. FHN holds securities issued by various Agency securitization trusts. Based on their restrictive nature, the trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entities’ economic performance. FHN could potentially receive benefits or absorb losses that are significant to the trusts based on the nature of the trusts’ activities and the size of FHN’s holdings. However, FHN is solely a holder of the trusts’ securities and does not have the power to direct the activities that most significantly impact the trusts’ economic performance, and is not considered the primary beneficiary of the trusts. FHN has no contractual requirements to provide financial support to the trusts.

Commercial Loan Troubled Debt Restructurings. For certain troubled commercial loans, FTBNA restructures the terms of the borrower’s debt in an effort to increase the probability of receipt of amounts contractually due. Following a troubled debt restructuring, the borrower entity typically meets the definition of a VIE as the initial determination of whether an entity is a VIE must be reconsidered as events have proven that the entity’s equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As FTBNA does not have the power to direct the activities that most significantly impact such troubled commercial borrowers’ operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, FTBNA is exposed to potentially significant benefits and losses of the borrowing entity. FTBNA has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt that allows for preparation of the underlying collateral for sale.

Sale Leaseback Transaction. In fourth quarter 2015, FTB entered into an agreement with a single asset leasing entity for the sale and lease back of an office building. In conjunction with this transaction, FTB loaned funds to a related party of the buyer that were used for the purchase price of the building. FTB also entered into a construction loan agreement with the single asset entity for renovation of the building. Since this transaction did not qualify as a sale, it is being accounted for using the deposit method which creates a net asset or liability for all cash flows between FTB and the buyer. The buyer-lessor in this transaction meets the definition of a VIE as it does not have sufficient equity at risk since FTB is providing the funding for the purchase and renovation. A related party of the buyer-lessor has the power to direct the activities that most significantly impact the operations and could potentially receive benefits or absorb losses that are significant to the transactions, making it the primary beneficiary. Therefore, FTB does not consolidate the leasing entity.

48

Note 13 – Variable Interest Entities (Continued)

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2016:

(Dollars in thousands)	Maximum Loss Exposure		Liability Recognized		Classification
Type
Low income housing partnerships	$	65,754	$	12,817	(a)
Other tax credit investments (b) (c)		20,321		—	Other assets
Small issuer trust preferred holdings (d)		333,309		—	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,370		64,803	(e)
Proprietary residential mortgage securitizations		17,201		—	(f)
Holdings of agency mortgage-backed securities (d)		4,586,329		—	(g)
Short positions in agency mortgage-backed securities (h)		N/A		199	Trading liabilities
Commercial loan troubled debt restructurings (i)		36,354		—	Loans, net of unearned income
Sale-leaseback transaction		11,827		—	(j)

(a) Maximum loss exposure represents $52.9 million of current investments and $12.8 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2017.

(b) A liability is not recognized as investments are written down over the life of the related tax credit.

(c) Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.

(d) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(e) Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.8 million classified as Term borrowings.

(f) Includes $.3 million classified as MSR, $2.8 million classified as Trading securities, and $14.1 million of aggregate servicing advances.

(g) Includes $.7 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.

(h) No exposure of loss due to the nature of FHN’s involvement.

(i) Maximum loss exposure represents $36.3 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(j) Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2015:

(Dollars in thousands)	Maximum Loss Exposure		Liability Recognized		Classification
Type
Low income housing partnerships	$	76,982	$	22,224		(a)
Other tax credit investments (b) (c)		21,359		—		Other assets
Small issuer trust preferred holdings (d)		344,291		—		Loans, net of unearned income
On-balance sheet trust preferred securitization		50,037		64,137		(e)
Proprietary and agency residential mortgage securitizations		25,105		—		(g)
Holdings of agency mortgage-backed securities (d)		4,030,604		—		(h)
Short positions in agency mortgage-backed securities (f)		N/A		896		Trading liabilities
Commercial loan troubled debt restructurings (i) (j)		29,280		—		Loans, net of unearned income

(a) Maximum loss exposure represents $54.8 million of current investments and $22.2 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.

(b) A liability is not recognized as investments are written down over the life of the related tax credit.

(c) Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.

(d) Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.

(e) Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.1 million classified as Term borrowings.

(f) No exposure of loss due to the nature of FHN’s involvement.

(g) Includes $.6 million classified as MSR, $4.6 million classified as Trading securities, and $19.9 million of aggregate servicing advances.

(h) Includes $549.2 million classified as Trading securities and $3.5 billion classified as Securities available-for-sale.

(i) Maximum loss exposure represents $29.2 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

(j) A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers’ operations.

49

Note 14 – Derivatives

In the normal course of business, FHN utilizes various financial instruments (including derivative contracts and credit-related agreements) through its fixed income and risk management operations, as part of its risk management strategy and as a means to meet customers’ needs. Derivative instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet as required by GAAP. The contractual or notional amounts of these financial instruments do not necessarily represent the amount of credit or market risk. However, they can be used to measure the extent of involvement in various types of financial instruments. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. The Asset/Liability Committee (“ALCO”) controls, coordinates, and monitors the usage and effectiveness of these financial instruments.

Credit risk represents the potential loss that may occur if a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. FHN manages credit risk by entering into financial instrument transactions through national exchanges, primary dealers or approved counterparties, and by using mutual margining and master netting agreements whenever possible to limit potential exposure. FHN also maintains collateral posting requirements with certain counterparties to limit credit risk. On September 30, 2016 and 2015, respectively, FHN had $77.6 million and $88.6 million of cash receivables and $42.1 million and $47.4 million of cash payables related to collateral posting under master netting arrangements, inclusive of collateral posted related to contracts with adjustable collateral posting thresholds and over-collateralized positions, with derivative counterparties. With exchange-traded contracts, the credit risk is limited to the clearinghouse used. For non-exchange traded instruments, credit risk may occur when there is a gain in the fair value of the financial instrument and the counterparty fails to perform according to the terms of the contract and/or when the collateral proves to be of insufficient value. See additional discussion regarding master netting agreements and collateral posting requirements later in this note under the heading “Master Netting and Similar Agreements.” Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates or the prices of debt instruments. FHN manages market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. FHN continually measures this risk through the use of models that measure value-at-risk and earnings-at-risk.

Derivative Instruments. FHN enters into various derivative contracts both in a dealer capacity to facilitate customer transactions and as a risk management tool. Where contracts have been created for customers, FHN enters into upstream transactions with dealers to offset its risk exposure. Contracts with dealers that require central clearing are novated to a clearing agent who becomes FHN’s counterparty. Derivatives are also used as a risk management tool to hedge FHN’s exposure to changes in interest rates or other defined market risks.

Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Interest rate option contracts give the purchaser the right, but not the obligation, to buy or sell a specified quantity of a financial instrument, at a specified price, during a specified period of time. Caps and floors are options that are linked to a notional principal amount and an underlying indexed interest rate. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. Swaptions are options on interest rate swaps that give the purchaser the right, but not the obligation, to enter into an interest rate swap agreement during a specified period of time.

Trading Activities

FHN’s fixed income segment trades U.S. Treasury, U.S. Agency, mortgage-backed, corporate and municipal fixed income securities, and other securities for distribution to customers. When these securities settle on a delayed basis, they are considered forward contracts. Fixed income also enters into interest rate contracts, including caps, swaps, and floors, for its customers. In addition, fixed income enters into futures and option contracts to economically hedge interest rate risk associated with a portion of its securities inventory. These transactions are measured at fair value, with changes in fair value recognized currently in fixed income noninterest income. Related assets and liabilities are recorded on the Consolidated Condensed Statements of Condition as Derivative assets and Derivative liabilities. The FTN Financial Risk Committee and the Credit Risk Management Committee collaborate to mitigate credit risk related to these transactions. Credit risk is controlled through credit approvals, risk control limits, and ongoing monitoring procedures. Total trading revenues were $59.0 million and $43.0 million for the three months ended September 30, 2016 and 2015, respectively, and $185.9 million and $143.2 million for the nine months ended September 30, 2016 and 2015. Trading revenues are inclusive of both derivative and non-derivative financial instruments, and are included in fixed income noninterest income.

50

Note 14 – Derivatives (Continued)

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of September 30, 2016 and 2015:

	September 30, 2016
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts	$	1,891,507	$	80,800	$	580
Offsetting Upstream Interest Rate Contracts		1,891,507		580		80,800
Option Contracts Purchased		67,500		89		—
Forwards and Futures Purchased		4,183,225		10,092		965
Forwards and Futures Sold		4,528,079		1,667		9,959
	September 30, 2015
(Dollars in thousands)	Notional		Assets		Liabilities
Customer Interest Rate Contracts	$	1,670,717	$	82,905	$	1,512
Offsetting Upstream Interest Rate Contracts		1,670,717		1,512		82,905
Option Contracts Purchased		10,000		23		—
Forwards and Futures Purchased		3,458,150		15,561		353
Forwards and Futures Sold		3,578,542		774		15,568

Interest Rate Risk Management

FHN’s ALCO focuses on managing market risk by controlling and limiting earnings volatility attributable to changes in interest rates. Interest rate risk exists to the extent that interest-earning assets and interest-bearing liabilities have different maturity or repricing characteristics. FHN uses derivatives, including swaps, caps, options, and collars, that are designed to moderate the impact on earnings as interest rates change. Interest paid or received for swaps utilized by FHN to hedge the fair value of long term debt is recognized as an adjustment of the interest expense of the liabilities whose risk is being managed. FHN’s interest rate risk management policy is to use derivatives to hedge interest rate risk or market value of assets or liabilities, not to speculate. In addition, FHN has entered into certain interest rate swaps and caps as a part of a product offering to commercial customers that includes customer derivatives paired with upstream offsetting market instruments that, when completed, are designed to mitigate interest rate risk. These contracts do not qualify for hedge accounting and are measured at fair value with gains or losses included in current earnings in Noninterest expense on the Consolidated Condensed Statements of Income.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $400.0 million of senior debt issued by FTBNA which matures in December 2019. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $9.6 million and $8.8 million in Derivative assets as of September 30, 2016 and 2015, respectively. There was an insignificant level of ineffectiveness related to this hedge.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $500.0 million of senior debt which matures in December 2020. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $7.7 million in Derivative assets as of September 30, 2016. There was an insignificant level of ineffectiveness related to this hedge.

Prior to maturity in April 2016, FHN designated a derivative transaction in a hedging strategy to manage interest rate risk of certain term borrowings totaling $250.0 million. These swaps were accounted for as fair value hedges under the shortcut method. The balance sheet amount of this swap was $6.1 million in Derivative assets on September 30, 2015.

Prior to maturity in December 2015, FHN designated a derivative transaction in a hedging strategy to manage interest rate risk on its $500 million noncallable senior debt. This derivative qualified for hedge accounting under ASC 815-20 using the long-haul method. FHN hedged the interest rate risk on this debt using a pay floating, receive fixed interest rate swap. The balance sheet amount of this swap was $2.1 million in Derivative assets as of September 30, 2015. There was no ineffectiveness related to this hedge.

Prior to redemption in third quarter 2015, FHN designated derivative transactions in hedging strategies to manage interest rate risk on subordinated debt related to its trust preferred securities. These qualified for hedge accounting under ASC 815-20 using the long-haul method. FHN hedged the interest rate risk of the subordinated debt totaling $200 million using a pay floating, receive fixed interest rate swap. There was no ineffectiveness related to this hedge. In third quarter 2015, FHN called its junior subordinated debt, which triggered a call of the trust preferred securities, and removed all associated hedges. The redemption resulted in a gain on extinguishment of debt of $5.8 million.

51

Note 14 – Derivatives (Continued)

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the three and nine months ended September 30, 2016 and 2015:

								Gains/(Losses)
								Three Months Ended			Nine Months Ended
(Dollars in thousands)	Notional		Assets		Liabilities			September 30, 2016			September 30, 2016
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts (a)	$	1,204,975	$	45,096	$	89		$	(1,964	)	$	18,749
Offsetting Upstream Interest Rate Contracts (a)		1,204,975		89		45,596			1,964			(18,749	)
Debt Hedging
Hedging Instruments:
Interest Rate Swaps (b)	$	900,000	$	17,257		N/A		$	(7,254	)	$	19,352
Hedged Items:
Term Borrowings (b)		N/A		N/A	$	900,000	(c)	$	7,152	(d)	$	(19,059	)(d)
								Gains/(Losses)
								Three Months Ended			Nine Months Ended
(Dollars in thousands)	Notional		Assets		Liabilities			September 30, 2015			September 30, 2015
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
Customer Interest Rate Contracts (a)	$	790,321	$	34,507	$	210		$	10,558		$	8,643
Offsetting Upstream Interest Rate Contracts (a)		790,321		210		35,007			(10,558	)		(8,643	)
Debt Hedging
Hedging Instruments:
Interest Rate Swaps (b)	$	1,150,000	$	16,960		N/A		$	3,247		$	(6,593	)
Hedged Items:
Term Borrowings (b)		N/A		N/A	$	1,150,000	(c)	$	(3,167	)(d)	$	6,645	(d)

(a) Gains/losses included in the All other expense section of the Consolidated Condensed Statements of Income.

(b) Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.

(c) Represents par value of term borrowings being hedged.

(d) Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

In first quarter 2016, FHN entered into a pay floating, receive fixed interest rate swap in a hedging strategy to manage its exposure to the variability in cash flows related to the interest payments for the following five years on $250 million principal of debt instruments, which primarily consist of held-to-maturity trust preferred loans that have variable interest payments based on LIBOR. This qualifies for hedge accounting as a cash flow hedge under ASC 815-20. Changes in the fair value of this derivative are recorded as a component of AOCI, to the extent that the hedge relationship is effective. Amounts are reclassified from AOCI to earnings as the hedged cash flows affect earnings. FTB measures ineffectiveness using the Hypothetical Derivative Method. To the extent that any ineffectiveness exists in the hedge relationships, the amounts are recorded in current period earnings.

52

Note 14 – Derivatives (Continued)

The following table summarizes FHN’s derivative activities associated with cash flow hedges as of and for the three and nine months ended September 30, 2016.

Gains/(Losses)

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

September 30, 2016

September 30, 2016

Cash Flow Hedges

Hedging Instruments:

Interest Rate Swaps (a)

$

250,000

$

5,061

N/A

$

(2,545

)(b)

$

5,061

(b)

Hedged Items:

Variability in Cash Flows Related to Trust Preferred Loans

N/A

250,000

N/A

N/A

N/A

(a) After tax gains/(losses) included within AOCI.

(b) Includes approximately $1.2 million expected to be reclassified into earnings in the next twelve months.

FHN hedges held-to-maturity trust preferred loans which have an initial fixed rate term before conversion to a floating rate. FHN has entered into pay fixed, receive floating interest rate swaps to hedge the interest rate risk associated with this initial term. Interest paid or received for these swaps is recognized as an adjustment of the interest income of the assets whose risk is being hedged. Basis adjustments remaining at the end of the hedge term are being amortized as an adjustment to interest income over the remaining life of the loans. Gains or losses are included in Other income and commissions on the Consolidated Condensed Statements of Income.

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the three and nine months ended September 30, 2016 and 2015:

								Gains/(Losses)
								Three Months Ended			Nine Months Ended
(Dollars in thousands)	Notional		Assets			Liabilities		September 30, 2016			September 30, 2016
Loan Portfolio Hedging
Hedging Instruments:
Interest Rate Swaps	$	6,500		N/A		$	287	$	93		$	201
Hedged Items:
Trust Preferred Loans (a)		N/A	$	6,500	(b)		N/A	$	(92	)(c)	$	(199	)(c)
								Gains/(Losses)
								Three Months Ended			Nine Months Ended
(Dollars in thousands)	Notional		Assets			Liabilities		September 30, 2015			September 30, 2015
Loan Portfolio Hedging
Hedging Instruments:
Interest Rate Swaps	$	6,500		N/A		$	600	$	40		$	144
Hedged Items:
Trust Preferred Loans (a)		N/A	$	6,500	(b)		N/A	$	(39	)(c)	$	(142	)(c)

(a) Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.

(b) Represents principal balance being hedged.

(c) Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Other Derivatives

In conjunction with the sales of a portion of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make or receive cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. As of September 30, 2016 and 2015, the derivative liabilities associated with the sales of Visa Class B shares were $6.5 million and $4.8 million, respectively. See the Visa Matters section of Note 10 – Contingencies and Other Disclosures for more information regarding FHN’s Visa shares.

FHN utilizes cross currency swaps and cross currency interest rate swaps to economically hedge its exposure to foreign currency risk and interest rate risk associated with non-U.S. dollar denominated loans. As of September 30, 2016 and 2015, these loans were valued at $2.6 million and $2.8 million, respectively. The balance sheet amount and the gains/losses associated with these derivatives were not significant.

53

Note 14 – Derivatives (Continued)

Master Netting and Similar Agreements

As previously discussed, FHN uses master netting agreements, mutual margining agreements and collateral posting requirements to minimize credit risk on derivative contracts. Master netting and similar agreements are used when counterparties have multiple derivatives contracts that allow for a “right of setoff,” meaning that a counterparty may net offsetting positions and collateral with the same counterparty under the contract to determine a net receivable or payable. The following discussion provides an overview of these arrangements which may vary due to the derivative type and market in which a derivative transaction is executed.

Interest rate derivatives are subject to agreements consistent with standard agreement forms of the International Swap and Derivatives Association (“ISDA”). Currently, all interest rate derivative contracts are entered into as over-the-counter transactions and collateral posting requirements are based on the net asset or liability position with each respective counterparty. For contracts that require central clearing, novation to a counterparty with access to a clearinghouse occurs and collateral is posted. Cash collateral received (posted) for interest rate derivatives is recognized as a liability (asset) on FHN’s Consolidated Condensed Statements of Condition.

Interest rate derivatives with customers that are smaller financial institutions typically require posting of collateral by the counterparty to FHN. This collateral is subject to a threshold with daily adjustments based upon changes in the level or fair value of the derivative position. Positions and related collateral can be netted in the event of default. Collateral pledged by a counterparty is typically cash or securities. The securities pledged as collateral are not recognized within FHN’s Consolidated Condensed Statements of Condition. Interest rate derivatives associated with lending arrangements share the collateral with the related loan(s). The derivative and loan positions may be netted in the event of default. For disclosure purposes, the entire collateral amount is allocated to the loan.

Interest rate derivatives with larger financial institutions entered into prior to required central clearing typically contain provisions whereby the collateral posting thresholds under the agreements adjust based on the credit ratings of both counterparties. If the credit rating of FHN and/or FTBNA is lowered, FHN could be required to post additional collateral with the counterparties. Conversely, if the credit rating of FHN and/or FTBNA is increased, FHN could have collateral released and be required to post less collateral in the future. Also, if a counterparty’s credit ratings were to decrease, FHN and/or FTBNA could require the posting of additional collateral; whereas if a counterparty’s credit ratings were to increase, the counterparty could require the release of excess collateral. Collateral for these arrangements is adjusted daily based on changes in the net fair value position with each counterparty.

The net fair value, determined by individual counterparty, of all derivative instruments with adjustable collateral posting thresholds was $80.8 million of assets and $66.7 million of liabilities on September 30, 2016, and $93.1 million of assets and $79.7 million of liabilities on September 30, 2015. As of September 30, 2016 and 2015, FHN had received collateral of $156.9 million in both periods and posted collateral of $68.4 million and $79.9 million, respectively, in the normal course of business related to these agreements.

Certain agreements entered into prior to required central clearing also contain accelerated termination provisions, inclusive of the right of offset, if a counterparty’s credit rating falls below a specified level. If a counterparty’s debt rating (including FHN’s and FTBNA’s) were to fall below these minimums, these provisions would be triggered, and the counterparties could terminate the agreements and require immediate settlement of all derivative contracts under the agreements. The net fair value, determined by individual counterparty, of all derivative instruments with credit-risk-related contingent accelerated termination provisions was $80.5 million of assets and $23.8 million of liabilities on September 30, 2016, and $93.1 million of assets and $20.2 million of liabilities on September 30, 2015. As of September 30, 2016 and 2015, FHN had received collateral of $156.9 million in both periods and posted collateral of $28.4 million and $24.6 million, respectively, in the normal course of business related to these contracts.

FHN’s fixed income segment buys and sells various types of securities for its customers. When these securities settle on a delayed basis, they are considered forward contracts, and are generally not subject to master netting agreements. For futures and options, FHN transacts through a third party, and the transactions are subject to margin and collateral maintenance requirements. In the event of default, open positions can be offset along with the associated collateral.

For this disclosure, FHN considers the impact of master netting and other similar agreements which allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net derivative asset or liability position with the related securities and cash collateral. The application of the collateral cannot reduce the net derivative asset or liability position below zero, and therefore any excess collateral is not reflected in the following tables.

54

Note 14 – Derivatives (Continued)

The following table provides details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of September 30:

							Gross amounts not offset in the
							Statements of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statements of		in the Statements		available for			Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset			Received			Net amount
Derivative assets:
2016 (b)	$	148,883	$	—	$	148,883	$	(8,823	)	$	(125,095	)	$	14,965
2015 (b)		136,098		—		136,098		(9,748	)		(121,401	)		4,949

(a) Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of September 30, 2016 and 2015, $11.9 million and $16.5 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.

(b) 2016 and 2015 are comprised entirely of interest rate derivative contracts.

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of September 30:

							Gross amounts not offset in the
			Gross amounts		Net amounts of		Statements of Condition
	Gross amounts		offset in the		liabilities presented		Derivative
	of recognized		Statements of		in the Statements		assets available			Collateral
(Dollars in thousands)	liabilities		Condition		of Condition (a)		for offset			pledged			Net amount
Derivative liabilities:
2016 (b)	$	127,352	$	—	$	127,352	$	(8,823	)	$	(57,298	)	$	61,231
2015 (b)		120,234		—		120,234		(9,748	)		(78,211	)		32,275

(a) Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As of September 30, 2016 and 2015, $17.5 million and $20.7 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.

(b) 2016 and 2015 are comprised entirely of interest rate derivative contracts.

55

Note 15 –Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing and Lending Transactions

For repurchase, reverse repurchase and securities borrowing and lending transactions, FHN and each counterparty have the ability to offset all open positions and related collateral in the event of default. Due to the nature of these transactions, the value of the collateral for each transaction approximates the value of the corresponding receivable or payable. For repurchase agreements within FHN’s fixed income business, transactions are collateralized by securities which are delivered on the settlement date and are maintained throughout the term of the transaction. For FHN’s repurchase agreements through banking activities, securities are typically pledged at the time of the transaction and not released until settlement. For asset positions, the collateral is not included on FHN’s Consolidated Condensed Statements of Condition. For liability positions, securities collateral pledged by FHN is generally represented within FHN’s trading or available-for-sale securities portfolios.

For this disclosure, FHN considers the impact of master netting and other similar agreements that allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net asset or liability position with the related securities collateral. The application of the collateral cannot reduce the net asset or liability position below zero, and therefore any excess collateral is not reflected in the tables below.

The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of September 30:

							Gross amounts not offset in the
							Statements of Condition
			Gross amounts		Net amounts of		Offsetting			Securities collateral
	Gross amounts		offset in the		assets presented		securities sold			(not recognized on
	of recognized		Statements of		in the Statements		under agreements			FHN’s Statements
(Dollars in thousands)	assets		Condition		of Condition		to repurchase			of Condition)			Net amount
Securities purchased under agreements to resell:
2016	$	802,815	$	—	$	802,815	$	(1,632	)	$	(792,851	)	$	8,332
2015		793,098		—		793,098		(2,909	)		(782,844	)		7,345

The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of September 30:

							Gross amounts not offset in the
							Statements of Condition
			Gross amounts		Net amounts of		Offsetting
	Gross amounts		offset in the		liabilities presented		securities
	of recognized		Statements of		in the Statements		purchased under			Securities
(Dollars in thousands)	liabilities		Condition		of Condition		agreements to resell			Collateral			Net amount
Securities sold under agreements to repurchase:
2016	$	341,998	$	—	$	341,998	$	(1,632	)	$	(340,047	)	$	319
2015		332,329		—		332,329		(2,909	)		(329,420	)		—

56

Note 15 –Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing and Lending Transactions (Continued)

Due to the short duration of Securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of Securities sold under agreements to repurchase as of September 30:

	September 30, 2016
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	38,382	$	—	$	38,382
Government agency issued MBS		289,341		—		289,341
Government agency issued CMO		—		14,275		14,275
Total Securities sold under agreements to repurchase	$	327,723	$	14,275	$	341,998
	September 30, 2015
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	23,812	$	—	$	23,812
Government agency issued CMO		297,578		10,939		308,517
Total Securities sold under agreements to repurchase	$	321,390	$	10,939	$	332,329

57

Note 16 – Fair Value of Assets & Liabilities

FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are:

• Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.

• Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

• Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques.

Transfers between fair value levels are recognized at the end of the fiscal quarter in which the associated change in inputs occurs.

58

Note 16 – Fair Value of Assets & Liabilities (Continued)

Recurring Fair Value Measurements

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016:

	September 30, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
U.S. treasuries	$	—	$	110,538	$	—	$	110,538
Government agency issued MBS		—		478,756		—		478,756
Government agency issued CMO		—		266,284		—		266,284
Other U.S. government agencies		—		121,460		—		121,460
States and municipalities		—		93,448		—		93,448
Corporate and other debt		—		246,153		5		246,158
Equity, mutual funds, and other		—		1,112		—		1,112
Total trading securities - fixed income		—		1,317,751		5		1,317,756
Trading securities - mortgage banking		—		—		2,779		2,779
Loans held-for-sale		—		214		22,536		22,750
Securities available-for-sale:
U.S. treasuries		—		100		—		100
Government agency issued MBS		—		1,940,357		—		1,940,357
Government agency issued CMO		—		1,901,144		—		1,901,144
Equity, mutual funds, and other		24,636		—		—		24,636
Total securities available-for-sale		24,636		3,841,601		—		3,866,237
Other assets:
Mortgage servicing rights		—		—		1,246		1,246
Deferred compensation assets		31,892		—		—		31,892
Derivatives, forwards and futures		11,759		—		—		11,759
Derivatives, interest rate contracts		—		148,972		—		148,972
Derivatives, other		—		5		—		5
Total other assets		43,651		148,977		1,246		193,874
Total assets	$	68,287	$	5,308,543	$	26,566	$	5,403,396
Trading liabilities - fixed income:
U.S. treasuries	$	—	$	508,895	$	—	$	508,895
Government agency issued MBS		—		199		—		199
Other U.S. government agencies		—		7,934		—		7,934
States and municipalities		—		143		—		143
Corporate and other debt		—		185,055		—		185,055
Total trading liabilities - fixed income		—		702,226		—		702,226
Other liabilities:
Derivatives, forwards and futures		10,924		—		—		10,924
Derivatives, interest rate contracts		—		127,352		—		127,352
Derivatives, other		—		13		6,540		6,553
Total other liabilities		10,924		127,365		6,540		144,829
Total liabilities	$	10,924	$	829,591	$	6,540	$	847,055

59

Note 16 – Fair Value of Assets & Liabilities (Continued)

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2015:

	September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
U.S. treasuries	$	—	$	97,211	$	—	$	97,211
Government agency issued MBS		—		265,290		—		265,290
Government agency issued CMO		—		283,927		—		283,927
Other U.S. government agencies		—		113,739		—		113,739
States and municipalities		—		65,255		—		65,255
Trading Loans		—		16,943		—		16,943
Corporate and other debt		—		381,470		5		381,475
Equity, mutual funds, and other		—		742		—		742
Total trading securities - fixed income		—		1,224,577		5		1,224,582
Trading securities - mortgage banking		—		—		4,598		4,598
Loans held-for-sale		—		—		26,789		26,789
Securities available-for-sale:
U.S. treasuries		—		100		—		100
Government agency issued MBS		—		945,951		—		945,951
Government agency issued CMO		—		2,535,436		—		2,535,436
Other U.S. government agencies		—		—		1,446		1,446
States and municipalities		—		7,655		1,500		9,155
Equity, mutual funds, and other		25,840		—		—		25,840
Total securities available-for-sale		25,840		3,489,142		2,946		3,517,928
Other assets:
Mortgage servicing rights		—		—		1,993		1,993
Deferred compensation assets		25,972		—		—		25,972
Derivatives, forwards and futures		16,335		—		—		16,335
Derivatives, interest rate contracts		—		136,121		—		136,121
Derivatives, other		—		92		—		92
Total other assets		42,307		136,213		1,993		180,513
Total assets	$	68,147	$	4,849,932	$	36,331	$	4,954,410
Trading liabilities - fixed income:
U.S. treasuries	$	—	$	478,759	$	—	$	478,759
Government agency issued MBS		—		1,481		—		1,481
Other U.S. government agencies		—		6,482		—		6,482
Corporate and other debt		—		301,841		—		301,841
Total trading liabilities - fixed income		—		788,563		—		788,563
Other liabilities:
Derivatives, forwards and futures		15,921		—		—		15,921
Derivatives, interest rate contracts		—		120,234		—		120,234
Derivatives, other		—		—		4,810		4,810
Total other liabilities		15,921		120,234		4,810		140,965
Total liabilities	$	15,921	$	908,797	$	4,810	$	929,528

60

Note 16 – Fair Value of Assets & Liabilities (Continued)

Changes in Recurring Level 3 Fair Value Measurements

The changes in Level 3 assets and liabilities measured at fair value for the three months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:

	Three Months Ended September 30, 2016
							Securities			Mortgage
	Trading			Loans held-			available-			servicing			Net derivative
(Dollars in thousands)	securities			for-sale			for-sale			rights, net			liabilities
Balance on July 1, 2016	$	2,826		$	25,738		$	1,500		$	1,406		$	(6,835	)
Total net gains/(losses) included in:
Net income		304			1,604			—			—			(4	)
Purchases		—			198			—			—			—
Settlements		(346	)		(2,146	)		(1,500	)		(160	)		299
Net transfers into/(out of) Level 3		—			(2,858	)(b)		—			—			—
Balance on September 30, 2016	$	2,784		$	22,536		$	—		$	1,246		$	(6,540	)
Net unrealized gains/(losses) included in net income	$	244	(a)	$	1,604	(a)	$	—		$	—		$	(4	)(c)
	Three Months Ended September 30, 2015
							Securities			Mortgage
	Trading			Loans held-			available-			servicing			Net derivative
(Dollars in thousands)	securities			for-sale			for-sale			rights, net			liabilities
Balance on July 1, 2015	$	4,929		$	26,525		$	3,060		$	2,158		$	(4,810	)
Total net gains/(losses) included in:
Net income		57			803			—			—			(302	)
Other comprehensive income/(loss)		—			—			(16	)		—			—
Purchases		—			1,902			—			—			—
Settlements		(383	)		(1,664	)		(98	)		(165	)		302
Net transfers into/(out of) Level 3		—			(777	)(b)		—			—			—
Balance on September 30, 2015	$	4,603		$	26,789		$	2,946		$	1,993		$	(4,810	)
Net unrealized gains/(losses) included in net income	$	57	(a)	$	803	(a)	$	—		$	—		$	(302	)(c)

(a) Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.

(b) Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).

(c) Included in Other expense.

61

Note 16 – Fair Value of Assets & Liabilities (Continued)

Changes in Recurring Level 3 Fair Value Measurements

The changes in Level 3 assets and liabilities measured at fair value for the nine months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:

	Nine Months Ended September 30, 2016
							Securities			Mortgage
	Trading			Loans held-			available-			servicing			Net derivative
(Dollars in thousands)	securities			for-sale			for-sale			rights, net			liabilities
Balance on January 1, 2016	$	4,377		$	27,418		$	1,500		$	1,841		$	(4,810	)
Total net gains/(losses) included in:
Net income		506			2,375			—			31			(2,627	)
Purchases		—			673			—			—			—
Sales		—			—			—			(205	)		—
Settlements		(2,099	)		(4,643	)		(1,500	)		(421	)		897
Net transfers into/(out of) Level 3		—			(3,287	)(b)		—			—			—
Balance on September 30, 2016	$	2,784		$	22,536		$	—		$	1,246		$	(6,540	)
Net unrealized gains/(losses) included in net income	$	324	(a)	$	2,375	(a)	$	—		$	—		$	(2,627	)(c)
	Nine Months Ended September 30, 2015
							Securities			Mortgage
	Trading			Loans held-			available-			servicing			Net derivative
(Dollars in thousands)	securities			for-sale			for-sale			rights, net			liabilities
Balance on January 1, 2015	$	5,642		$	27,910		$	3,307		$	2,517		$	(5,240	)
Total net gains/(losses) included in:
Net income		296			2,193			—			—			(466	)
Other comprehensive income/(loss)		—			—			(44	)		—			—
Purchases		—			3,080			—			—			—
Settlements		(1,335	)		(4,483	)		(317	)		(524	)		896
Net transfers into/(out of) Level 3		—			(1,911	)(b)		—			—			—
Balance on September 30, 2015	$	4,603		$	26,789		$	2,946		$	1,993		$	(4,810	)
Net unrealized gains/(losses) included in net income	$	296	(a)	$	2,193	(a)	$	—		$	—		$	(466	)(c)

(a) Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.

(b) Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).

(c) Included in Other expense.

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at September 30, 2016 and 2015, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

									Three Months Ended			Nine Months Ended
	Carrying value at September 30, 2016								September 30, 2016			September 30, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)			Net gains/(losses)
Loans held-for-sale - first mortgages	$	—	$	—	$	671	$	671	$	10		$	17
Loans, net of unearned income (a)		—		—		31,797		31,797		461			(3,249	)
Real estate acquired by foreclosure (b)		—		—		13,678		13,678		(711	)		(1,561	)
Other assets (c)		—		—		28,285		28,285		(788	)		(2,325	)
									$	(1,028	)	$	(7,118	)

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Note 16 – Fair Value of Assets & Liabilities (Continued)

									Three Months Ended			Nine Months Ended
	Carrying value at September 30, 2015								September 30, 2015			September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)			Net gains/(losses)
Loans held-for-sale - first mortgages	$	—	$	—	$	726	$	726	$	10		$	48
Loans, net of unearned income (a)		—		—		27,898		27,898		1,195			2,729
Real estate acquired by foreclosure (b)		—		—		25,872		25,872		(706	)		(2,366	)
Other assets (c)		—		—		27,825		27,825		(439	)		(1,383	)
									$	60		$	(972	)

(a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.

(b) Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.

(c) Represents tax credit investments accounted for under the equity method.

In first quarter 2016, FHN’s Regional Banking segment recognized $3.7 million of impairments on long-lived assets associated with efforts to more efficiently utilize its bank branch locations. The affected branch locations represented a mixture of owned and leased sites. The fair values of owned sites were determined using estimated sales prices from appraisals less estimated costs to sell. The fair values of leased sites were determined using a discounted cash flow approach, based on the revised estimated useful lives of the related assets. Both measurement methodologies are considered Level 3 valuations.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

Level 3 Measurements

The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of September 30, 2016 and 2015:

(Dollars in Thousands)

Level 3 Class	Fair Value at September 30, 2016		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	2,779	Discounted cash flow	Prepayment speeds	34% - 46%
				Discount rate	30% - 57%
Loans held-for-sale - residential real estate		23,207	Discounted cash flow	Prepayment speeds - First mortgage	2% - 20%
				Prepayment speeds - HELOC	5% - 15%
				Foreclosure losses	47% - 57%
				Loss severity trends - First mortgage	5% - 70% of UPB
				Loss severity trends - HELOC	35% - 100% of UPB
				Draw rate - HELOC	5% - 12%
Derivative liabilities, other		6,540	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	27 - 57 months
Loans, net of unearned income (a)		31,797	Appraisals from     comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral     valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		13,678	Appraisals from     comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		28,285	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from     comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

(a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.

(b) Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.

(c) Represents tax credit investments accounted for under the equity method.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

(Dollars in Thousands)

Level 3 Class	Fair Value at September 30, 2015		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	4,598	Discounted cash flow	Prepayment speeds	43% - 45%
				Discount rate	6% - 59%
Loans held-for-sale - residential real estate		27,515	Discounted cash flow	Prepayment speeds - First mortgage	2% - 20%
				Prepayment speeds - HELOC	5% - 15%
				Foreclosure Losses	45% - 55%
				Loss severity trends - First mortgage	20% - 70% of UPB
				Loss severity trends - HELOC	35% - 100% of UPB
				Draw Rate - HELOC	5% - 12%
Derivative liabilities, other		4,810	Discounted cash flow	Visa covered litigation resolution amount	$4.5 billion - $5.5 billion
				Probability of resolution scenarios	5% - 25%
				Time until resolution	6 - 42 months
Loans, net of unearned income (a)		27,898	Appraisals from     comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral     valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction Values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		25,872	Appraisals from     comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		27,825	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from     comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

(a) Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.

(b) Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.

(c) Represents tax credit investments accounted for under the equity method.

Trading securities-mortgage. Prepayment rates and credit spreads (part of the discount rate) are significant unobservable inputs used in the fair value measurement of FHN’s mortgage trading securities which include interest-only strips and principal-only strips. Subordinated bonds were also included in mortgage trading securities prior to their payoff in first quarter 2016. Increases in prepayment rates and credit spreads in isolation would result in significantly lower fair value measurements for the associated assets. Conversely, decreases in prepayment rates and credit spreads in isolation would result in significantly higher fair value measurements for the associated assets. Generally, when market interest rates decline and other factors favorable to prepayments occur, there is a corresponding increase in prepayment rates as customers are expected to refinance existing mortgages under more favorable interest rate terms. Generally, changes in discount rates directionally mirror the changes in market interest rates. FHN’s Corporate Accounting Department monitors changes in the fair value of these securities monthly.

Loans held-for-sale. Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held-for-sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loans and loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. Draw rates are an additional significant unobservable input for HELOCs. Increases (decreases) in the draw rate estimates for HELOCs would increase (decrease) their fair value. All observable and unobservable inputs are re-assessed quarterly. Fair value measurements are reviewed at least quarterly by FHN’s Corporate Accounting Department.

Derivative liabilities. In conjunction with the sales of portions of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares

65

Note 16 – Fair Value of Assets & Liabilities (Continued)

into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. The valuation inputs and process are discussed with senior and executive management when significant events affecting the estimate of fair value occur. Inputs are compared to information obtained from the public issuances and filings of Visa, Inc. as well as public information released by other participants in the applicable litigation matters.

Loans, net of unearned income and Real estate acquired by foreclosure. Collateral-dependent loans and Real estate acquired by foreclosure are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Multiple appraisal firms are utilized to ensure that estimated values are consistent between firms. This process occurs within FHN’s Credit Risk Management (commercial) and Default Servicing functions (primarily consumer) and the Credit Risk Management Committee reviews valuation methodologies and loss information for reasonableness. Back testing is performed during the year through comparison to ultimate disposition values and is reviewed quarterly within the Credit Risk Management function. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates.

Other assets – tax credit investments. The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Unusual valuation adjustments and the associated triggering events are discussed with senior and executive management when appropriate. A portfolio review is conducted annually, with the assistance of a third party, to assess the reasonableness of current valuations.

Fair Value Option

FHN elected the fair value option on a prospective basis for almost all types of mortgage loans originated for sale purposes under the Financial Instruments Topic (“ASC 825”). FHN determined that the election reduced certain timing differences and better matched changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election.

Repurchased loans are recognized within loans held-for-sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.

	September 30, 2016
(Dollars in thousands)	Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
Total loans	$	22,750	$	34,241	$	(11,491	)
Nonaccrual loans		6,638		12,850		(6,212	)
Loans 90 days or more past due and still accruing		22		26		(4	)
	September 30, 2015
(Dollars in thousands)	Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
Total loans	$	26,789	$	41,350	$	(14,561	)
Nonaccrual loans		7,206		13,712		(6,506	)
Loans 90 days or more past due and still accruing		2,677		3,822		(1,145	)

Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Changes in fair value included in net income:
Mortgage banking noninterest income
Loans held-for-sale	$	1,604	$	803	$	2,375	$	2,193

For the three months ended September 30, 2016, and 2015, the amounts for residential real estate loans held-for-sale include a gain of $.5 million and a loss of $.2 million, respectively, in pretax earnings that are attributable to changes in instrument-specific credit risk. For the nine months ended September 30, 2016, and 2015, the amounts for loans held-for-sale include gains of $.7 million and $.5 million, respectively, in pretax earnings that are attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on estimated default rates and estimated loss severities. Interest income on residential real estate loans held-for-sale measured at fair value is calculated based on the note rate of the loan and is recorded in the interest income section of the Consolidated Condensed Statements of Income as interest on loans held-for-sale.

Determination of Fair Value

In accordance with ASC 820-10-35, fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Condensed Statements of Condition and for estimating the fair value of financial instruments for which fair value is disclosed under ASC 825-10-50.

Short-term financial assets. Federal funds sold, securities purchased under agreements to resell, and interest bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Trading securities and trading liabilities. Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, LIBOR and U.S. treasury curves, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

Trading securities also include retained interests in prior securitizations that qualify as financial assets, which include interest-only strips and principal-only strips. Subordinated bonds were included in mortgage trading securities prior to payoff in first quarter 2016. FHN uses inputs including yield curves, credit spreads, and prepayment speeds to determine the fair value of interest-only and principal-only strips. Subordinated bonds are bonds with junior priority and were valued using an internal model which included contractual terms, frequency and severity of loss (credit spreads), prepayment speeds of the underlying collateral, and the yield that a market participant would require.

Securities available-for-sale. Securities available-for-sale includes the investment portfolio accounted for as available-for-sale under ASC 320-10-25, federal bank stock holdings, and short-term investments in mutual funds. Valuations of available-for-sale securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves, consensus prepayment estimates, and credit spreads. When available, broker quotes are used to support these valuations. Prior to disposition in fourth quarter 2015, certain government agency debt obligations with limited trading activity were valued using a discounted cash flow model that incorporated a combination of observable and unobservable inputs. Primary observable inputs included contractual cash flows and the treasury curve. Significant unobservable inputs included estimated trading spreads and estimated prepayment speeds.

Investments in the stock of the Federal Reserve Bank and Federal Home Loan Banks are recognized at historical cost in the Consolidated Condensed Statements of Condition which is considered to approximate fair value. Short-term investments in mutual funds are measured at the funds’ reported closing net asset values. Investments in equity securities are valued using quoted market prices.

Securities held-to-maturity. Securities held-to-maturity reflects debt securities for which management has the positive intent and ability to hold to maturity. To the extent possible, valuations of held-to-maturity securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves and credit spreads. Debt securities with limited trading activity are valued using a discounted cash flow model that incorporates a combination of observable and unobservable inputs. Primary observable inputs include contractual cash flows, the treasury curve and credit spreads from similar instruments. Significant unobservable inputs include estimated credit spreads for individual issuers and instruments as well as prepayment speeds, as applicable.

Loans held-for-sale. Residential real estate loans held-for-sale are valued using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. For all other loans FHN determines the fair value of residential real estate loans held-for-sale using a discounted cash flow model which incorporates both observable and unobservable inputs. Inputs include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimates of loan draw rates as well as estimated cancellation rates for loans expected to become delinquent.

Loans held-for-sale also include loans made by the Small Business Administration (“SBA”), which are accounted for at LOCOM. The fair value of SBA loans is determined using an expected cash flow model that utilizes observable inputs such as the spread between LIBOR and prime rates, consensus prepayment speeds, and the treasury curve. The fair value of other non-residential real estate loans held-for-sale is approximated by their carrying values based on current transaction values.

Loans, net of unearned income. Loans, net of unearned income are recognized at the amount of funds advanced, less charge-offs and an estimation of credit risk represented by the allowance for loan losses. The fair value estimates for disclosure purposes differentiate loans based on their financial characteristics, such as product classification, vintage, loan category, pricing features, and remaining maturity.

The fair value of floating rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is considered to approximate book value due to the monthly repricing for commercial and consumer loans, with the exception of floating rate 1-4 family residential mortgage loans which reprice annually and will lag movements in market rates. The fair value for floating rate 1-4 family mortgage loans is calculated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the floating rate 1-4 family residential mortgage portfolio.

The fair value of fixed rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is

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Note 16 – Fair Value of Assets & Liabilities (Continued)

estimated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the fixed rate mortgage and installment loan portfolios.

For all loan portfolio classes, adjustments are made to reflect liquidity or illiquidity of the market. Such adjustments reflect discounts that FHN believes are consistent with what a market participant would consider in determining fair value given current market conditions.

Individually impaired loans are measured using either a discounted cash flow methodology or the estimated fair value of the underlying collateral less costs to sell, if the loan is considered collateral-dependent. In accordance with accounting standards, the discounted cash flow analysis utilizes the loan’s effective interest rate for discounting expected cash flow amounts. Thus, this analysis is not considered a fair value measurement in accordance with ASC 820. However, the results of this methodology are considered to approximate fair value for the applicable loans. Expected cash flows are derived from internally-developed inputs primarily reflecting expected default rates on contractual cash flows. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans.

Mortgage servicing rights. FHN recognizes all classes of MSR at fair value. In third quarter 2013, FHN agreed to sell substantially all of its remaining legacy mortgage servicing. Since that time FHN has used the price in the definitive agreement, as adjusted for the portion of pricing that was not specific to the MSR, as a third-party pricing source in the valuation of the remaining MSR.

Derivative assets and liabilities. The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used.

Valuations of other derivatives (primarily interest rate related swaps, swaptions, caps, and collars) are based on inputs observed in active markets for similar instruments. Typical inputs include the LIBOR curve, Overnight Indexed Swap (“OIS”) curve, option volatility, and option skew. In measuring the fair value of these derivative assets and liabilities, FHN has elected to consider credit risk based on the net exposure to individual counterparties. Credit risk is mitigated for these instruments through the use of mutual margining and master netting agreements as well as collateral posting requirements. Any remaining credit risk related to interest rate derivatives is considered in determining fair value through evaluation of additional factors such as customer loan grades and debt ratings. Foreign currency related derivatives also utilize observable exchange rates in the determination of fair value. The determination of fair value for FHN’s derivative liabilities associated with its prior sales of Visa Class B shares are classified within Level 3 in the fair value measurements disclosure as previously discussed in the unobservable inputs discussion.

Real estate acquired by foreclosure. Real estate acquired by foreclosure primarily consists of properties that have been acquired in satisfaction of debt. These properties are carried at the lower of the outstanding loan amount or estimated fair value less estimated costs to sell the real estate. Estimated fair value is determined using appraised values with subsequent adjustments for deterioration in values that are not reflected in the most recent appraisal.

Nonearning assets. For disclosure purposes, nonearning financial assets include cash and due from banks, accrued interest receivable, and fixed income receivables. Due to the short-term nature of cash and due from banks, accrued interest receivable, and fixed income receivables, the fair value is approximated by the book value.

Other assets. For disclosure purposes, other assets consist of tax credit investments and deferred compensation assets that are considered financial assets. Tax credit investments accounted for under the equity method are written down to estimated fair value quarterly based on the estimated value of the associated tax credits which incorporates estimates of required yield for hypothetical investors. The fair value of all other tax credit investments is estimated using recent transaction information with adjustments for differences in individual investments. Deferred compensation assets are recognized at fair value, which is based on quoted prices in active markets.

Defined maturity deposits. The fair value of these deposits is estimated by discounting future cash flows to their present value. Future cash flows are discounted by using the current market rates of similar instruments applicable to the remaining maturity. For disclosure purposes, defined maturity deposits include all certificates of deposit and other time deposits.

Undefined maturity deposits. In accordance with ASC 825, the fair value of these deposits is approximated by the book value. For the purpose of this disclosure, undefined maturity deposits include demand deposits, checking interest accounts, savings accounts, and money market accounts.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

Short-term financial liabilities. The fair value of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings are approximated by the book value. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Term borrowings. The fair value of term borrowings is based on quoted market prices or dealer quotes for the identical liability when traded as an asset. When pricing information for the identical liability is not available, relevant prices for similar debt instruments are used with adjustments being made to the prices obtained for differences in characteristics of the debt instruments. If no relevant pricing information is available, the fair value is approximated by the present value of the contractual cash flows discounted by the investor’s yield which considers FHN’s and FTBNA’s debt ratings.

Other noninterest-bearing liabilities. For disclosure purposes, other noninterest-bearing financial liabilities include accrued interest payable and fixed income payables. Due to the short-term nature of these liabilities, the book value is considered to approximate fair value.

Loan commitments. Fair values of these commitments are based on fees charged to enter into similar agreements taking into account the remaining terms of the agreements and the counterparties’ credit standing.

Other commitments. Fair values of these commitments are based on fees charged to enter into similar agreements.

The following fair value estimates are determined as of a specific point in time utilizing various assumptions and estimates. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, reduces the comparability of fair value disclosures between financial institutions. Due to market illiquidity, the fair values for loans, net of unearned income, loans held-for-sale, and term borrowings as of September 30, 2016 and 2015, involve the use of significant internally-developed pricing assumptions for certain components of these line items. The assumptions and valuations utilized for this disclosure are considered to reflect inputs that market participants would use in transactions involving these instruments as of the measurement date. The valuations of legacy assets, particularly consumer loans within the non-strategic segment and TRUP loans, are influenced by changes in economic conditions since origination and risk perceptions of the financial sector. These considerations affect the estimate of a potential acquirer’s cost of capital and cash flow volatility assumptions from these assets and the resulting fair value measurements may depart significantly from FHN’s internal estimates of the intrinsic value of these assets.

Assets and liabilities that are not financial instruments have not been included in the following table such as the value of long-term relationships with deposit and trust customers, premises and equipment, goodwill and other intangibles, deferred taxes, and certain other assets and other liabilities. Additionally, these measurements are solely for financial instruments as of the measurement date and do not consider the earnings potential of our various business lines. Accordingly, the total of the fair value amounts does not represent, and should not be construed to represent, the underlying value of FHN.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of September 30, 2016 and 2015.

	September 30, 2016
	Book		Fair Value
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
Commercial:
Commercial, financial and industrial	$	12,031,432	$	—	$	—	$	11,937,281	$	11,937,281
Commercial real estate		2,033,175		—		—		2,009,820		2,009,820
Consumer:
Consumer real estate		4,525,136		—		—		4,455,675		4,455,675
Permanent mortgage		419,511		—		—		410,302		410,302
Credit card & other		344,976		—		—		345,971		345,971
Total loans, net of unearned income and allowance for loan losses		19,354,230		—		—		19,159,049		19,159,049
Short-term financial assets:
Interest-bearing cash		219,834		219,834		—		—		219,834
Federal funds sold		27,097		—		27,097		—		27,097
Securities purchased under agreements to resell		802,815		—		802,815		—		802,815
Total short-term financial assets		1,049,746		219,834		829,912		—		1,049,746
Trading securities (a)		1,320,535		—		1,317,751		2,784		1,320,535
Loans held-for-sale		155,215		—		46,681		108,534		155,215
Securities available-for-sale (a) (b)		4,027,594		24,636		3,841,601		161,357		4,027,594
Securities held-to-maturity		14,340		—		—		15,042		15,042
Derivative assets (a)		160,736		11,759		148,977		—		160,736
Other assets:
Tax credit investments		90,824		—		—		89,879		89,879
Deferred compensation assets		31,892		31,892		—		—		31,892
Total other assets		122,716		31,892		—		89,879		121,771
Nonearning assets:
Cash & due from banks		327,639		327,639		—		—		327,639
Fixed income receivables		91,997		—		91,997		—		91,997
Accrued interest receivable		64,511		—		64,511		—		64,511
Total nonearning assets		484,147		327,639		156,508		—		484,147
Total assets	$	26,689,259	$	615,760	$	6,341,430	$	19,536,645	$	26,493,835
Liabilities:
Deposits:
Defined maturity	$	1,325,079	$	—	$	1,334,178	$	—	$	1,334,178
Undefined maturity		20,249,101		—		20,249,101		—		20,249,101
Total deposits		21,574,180		—		21,583,279		—		21,583,279
Trading liabilities (a)		702,226		—		702,226		—		702,226
Short-term financial liabilities:
Federal funds purchased		538,284		—		538,284		—		538,284
Securities sold under agreements to repurchase		341,998		—		341,998		—		341,998
Other short-term borrowings		792,736		—		792,736		—		792,736
Total short-term financial liabilities		1,673,018		—		1,673,018		—		1,673,018
Term borrowings:
Real estate investment trust-preferred		46,015		—		—		49,350		49,350
Term borrowings - new market tax credit investment		18,000		—		—		18,240		18,240
Borrowings secured by residential real estate		26,062		—		—		24,759		24,759
Other long term borrowings		975,574		—		965,124		—		965,124
Total term borrowings		1,065,651		—		965,124		92,349		1,057,473
Derivative liabilities (a)		144,829		10,924		127,365		6,540		144,829
Other noninterest-bearing liabilities:
Fixed income payables		68,897		—		68,897		—		68,897
Accrued interest payable		15,376		—		15,376		—		15,376
Total other noninterest-bearing liabilities		84,273		—		84,273		—		84,273
Total liabilities	$	25,244,177	$	10,924	$	25,135,285	$	98,889	$	25,245,098

(a) Classes are detailed in the recurring and nonrecurring measurement tables.

(b) Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

	September 30, 2015
	Book		Fair Value
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
Commercial:
Commercial, financial and industrial	$	9,538,832	$	—	$	—	$	9,473,702	$	9,473,702
Commercial real estate		1,462,696		—		—		1,447,848		1,447,848
Consumer:
Consumer real estate		4,731,464		—		—		4,535,337		4,535,337
Permanent mortgage		443,817		—		—		413,188		413,188
Credit card & other		337,869		—		—		339,527		339,527
Total loans, net of unearned income and allowance for loan losses		16,514,678		—		—		16,209,602		16,209,602
Short-term financial assets:
Interest-bearing cash		596,689		596,689		—		—		596,689
Federal funds sold		64,438		—		64,438		—		64,438
Securities purchased under agreements to resell		793,098		—		793,098		—		793,098
Total short-term financial assets		1,454,225		596,689		857,536		—		1,454,225
Trading securities (a)		1,229,180		—		1,224,577		4,603		1,229,180
Loans held-for-sale (a)		124,308		—		—		124,308		124,308
Securities available-for-sale (a) (b)		3,673,641		25,840		3,489,142		158,659		3,673,641
Securities held-to-maturity		4,313		—		—		5,404		5,404
Derivative assets (a)		152,548		16,335		136,213		—		152,548
Other assets:
Tax credit investments		98,341		—		—		58,030		58,030
Deferred compensation assets		25,972		25,972		—		—		25,972
Total other assets		124,313		25,972		—		58,030		84,002
Nonearning assets:
Cash & due from banks		256,342		256,342		—		—		256,342
Fixed income receivables		83,547		—		83,547		—		83,547
Accrued interest receivable		65,956		—		65,956		—		65,956
Total nonearning assets		405,845		256,342		149,503		—		405,845
Total assets	$	23,683,051	$	921,178	$	5,856,971	$	16,560,606	$	23,338,755
Liabilities:
Deposits:
Defined maturity	$	1,033,896	$	—	$	1,039,007	$	—	$	1,039,007
Undefined maturity		17,831,324		—		17,831,324		—		17,831,324
Total deposits		18,865,220		—		18,870,331		—		18,870,331
Trading liabilities (a)		788,563		—		788,563		—		788,563
Short-term financial liabilities:
Federal funds purchased		520,992		—		520,992		—		520,992
Securities sold under agreements to repurchase		332,329		—		332,329		—		332,329
Other short-term borrowings		99,887		—		99,887		—		99,887
Total short-term financial liabilities		953,208		—		953,208		—		953,208
Term borrowings:
Real estate investment trust-preferred		45,947		—		—		49,350		49,350
Term borrowings - new market tax credit investment		18,000		—		—		18,158		18,158
Borrowings secured by residential real estate		48,491		—		—		41,848		41,848
Other long term borrowings		1,227,502		—		1,214,410		—		1,214,410
Total term borrowings		1,339,940		—		1,214,410		109,356		1,323,766
Derivative liabilities (a)		140,965		15,921		120,234		4,810		140,965
Other noninterest-bearing liabilities:
Fixed income payables		95,346		—		95,346		—		95,346
Accrued interest payable		25,358		—		25,358		—		25,358
Total other noninterest-bearing liabilities		120,704		—		120,704		—		120,704
Total liabilities	$	22,208,600	$	15,921	$	22,067,450	$	114,166	$	22,197,537

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) Classes are detailed in the recurring and nonrecurring measurement tables.

(b) Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million.

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Note 16 – Fair Value of Assets & Liabilities (Continued)

	Contractual Amount				Fair Value
(Dollars in thousands)	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Unfunded Commitments:
Loan commitments	$	8,012,345	$	7,962,431	$	1,998	$	2,694
Standby and other commitments		287,499		281,740		3,867		4,424

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General Information	75
Forward-Looking Statements	76
Financial Summary	76
Statement of Condition Review	86
Capital	88
Asset Quality - Trend Analysis of Third Quarter 2016 Compared to Third Quarter 2015	91
Risk Management	104
Repurchase Obligations, Off-Balance Sheet Arrangements, and Other Contractual Obligations	109
Market Uncertainties and Prospective Trends	114
Critical Accounting Policies	115

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FIRST HORIZON NATIONAL CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

GENERAL INFORMATION

First Horizon National Corporation (“FHN”) began as a community bank chartered in 1864 and as of September 30, 2016, was one of the 40 largest publicly traded banking organizations in the United States in terms of asset size.

FHN’s two major brands – First Tennessee and FTN Financial - provide customers with a broad range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee and other selected markets and is the largest bank headquartered in the state of Tennessee. FTN Financial (“FTNF”) is an industry leader in fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad.

FHN is composed of the following operating segments:

• Regional banking offers financial products and services including traditional lending and deposit-taking to retail and commercial customers in Tennessee and other selected markets. Regional banking provides investments, financial planning, trust services and asset management, along with credit card and cash management. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking-related services to other financial institutions nationally.

• Fixed income provides financial services for depository and non-depository institutions through the sale and distribution of fixed income securities, loan sales, portfolio advisory services, and derivative sales.

• Corporate consists of unallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance (“BOLI”), unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, gains on the extinguishment of debt, and acquisition-related costs.

• Non-strategic includes exited businesses and wind-down national consumer lending activities, other discontinued products, and loan portfolios and service lines.

On October 27, 2016, FTN Financial announced its plan to acquire Coastal Securities (“Coastal”), a national leader in the trading, securitization, and analysis of Small Business Administration (“SBA”) loans, for approximately $160 million in cash. Based in Houston, TX, Coastal also trades United States Department of Agriculture (“USDA”) loans and fixed income products and provides municipal underwriting and advisory services to its clients. Coastal’s government-guaranteed loan products, combined with FTN Financial’s existing SBA trading activities, will establish an additional major product sector for FTN Financial. The transaction, which is subject to regulatory approvals, the affirmative vote of Coastal Financial Holdings, Inc. (“CFH”) shareholders and other customary closing conditions, is expected to close in early 2017.

On September 16, 2016, FTBNA acquired approximately $535 million of UPB in restaurant franchise loans from GE Capital. The acquired loans were combined with existing FTBNA relationships to establish a franchise finance specialty lending business.

On October 2, 2015, FHN completed its acquisition of TrustAtlantic Financial Corporation (“TrustAtlantic Financial” or “TAF”), and its wholly owned bank subsidiary TrustAtlantic Bank (“TAB”), for an aggregate of 5.1 million shares of FHN common stock and $23.9 million in cash in a transaction valued at $96.7 million. The fair value of the acquired assets totaled $445.3 million, including $281.9 million in loans. FHN also assumed $344.1 million of TAB deposits. FHN’s operating results include the operating results of the acquired assets and assumed liabilities of the acquired entity subsequent to the acquisition date. Refer to Note 2 – Acquisitions and Divestitures in this report and in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015 for additional information.

For the purpose of this management’s discussion and analysis (“MD&A”), earning assets have been expressed as averages, unless otherwise noted, and loans have been disclosed net of unearned income. The following financial discussion should be read with the accompanying unaudited Consolidated Condensed Financial Statements and Notes in this report. Additional information including the 2015 financial statements, notes, and MD&A is provided in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

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ADOPTION OF ACCOUNTING UPDATES

Effective January 1, 2016, FHN retroactively adopted the requirements of ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented as a direct reduction from the carrying value of that debt liability, consistent with debt discounts. FHN previously classified debt issuance costs within Other assets in the Consolidated Condensed Statements of Condition, consistent with prior requirements. The retrospective application of ASU 2015-03 resulted in a decrease to Other assets and Term borrowings of $1.2 million at September 30, 2015 and $2.5 million at December 31, 2015 versus previously reported amounts. The adoption of ASU 2015-03 had no effect on FHN’s recognition of interest expense. All prior periods and associated narrative in this report have been revised to reflect this change. For additional information see Note 1 – Financial Information in this report.

FORWARD-LOOKING STATEMENTS

This MD&A contains forward-looking statements with respect to FHN’s beliefs, plans, goals, expectations, and estimates. Forward-looking statements are statements that are not a representation of historical information but instead pertain to future operations, strategies, financial results, or other developments. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other expressions that indicate future events and trends identify forward-looking statements.

Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies, many of which are beyond FHN’s control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change. Examples of uncertainties and contingencies include, among other important factors: global, general and local economic and business conditions, including economic recession or depression; the stability or volatility of values and activity in the residential housing and commercial real estate markets; potential requirements for FHN to repurchase, or compensate for losses from, previously sold or securitized mortgages or securities based on such mortgages; potential claims relating to the foreclosure process; potential claims relating to participation in government programs, especially lending or other financial services programs; expectations of and actual timing and amount of interest rate movements, including the slope and shape of the yield curve, which can have a significant impact on a financial services institution; market and monetary fluctuations, including fluctuations in mortgage markets; inflation or deflation; customer, investor, regulatory, and legislative responses to any or all of these conditions; the financial condition of borrowers and other counterparties; competition within and outside the financial services industry; geopolitical developments including possible terrorist activity; natural disasters; effectiveness and cost-efficiency of FHN’s hedging practices; technological changes; fraud, theft, or other incursions through conventional, electronic, or other means affecting FHN directly or affecting its customers, business counterparties or competitors; demand for FHN’s product offerings; new products and services in the industries in which FHN operates; the increasing use of new technologies to interact with customers and others; and critical accounting estimates. Other factors are those inherent in originating, selling, servicing, and holding loans and loan-based assets, including prepayment risks, pricing concessions, fluctuation in U.S. housing and other real estate prices, fluctuation of collateral values, and changes in customer profiles. Additionally, the actions of the Securities and Exchange Commission (“SEC”), the Financial Accounting Standards Board (“FASB”), the Office of the Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System (“Federal Reserve” or “Fed”), the FDIC, the Financial Industry Regulatory Authority (“FINRA”), the U.S. Department of the Treasury (“U.S. Treasury”), the Municipal Securities Rulemaking Board (“MSRB”), the Consumer Financial Protection Bureau (“CFPB”), the Financial Stability Oversight Council (“Council”), the Public Company Accounting Oversight Board (“PCAOB”) and other regulators and agencies; pending, threatened, or possible future regulatory, administrative, and judicial outcomes, actions, and proceedings; changes in laws and regulations applicable to FHN; and FHN’s success in executing its business plans and strategies and managing the risks involved in the foregoing, could cause actual results to differ, perhaps materially, from those contemplated by the forward-looking statements.

FHN assumes no obligation to update or revise any forward-looking statements that are made in this Quarterly Report or otherwise from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those presented in this Forward-Looking Statements section, in other sections of this MD&A, in other parts of and exhibits to this Quarterly Report on Form 10-Q for the period ended September  30, 2016, and in documents incorporated into this Quarterly Report.

FINANCIAL SUMMARY

In third quarter 2016, FHN reported net income available to common shareholders of $63.2 million, or $.27 per diluted share, compared to net income available to common shareholders of $58.8 million or $.25 per diluted share in third quarter 2015. Results improved in third quarter 2016 relative to the prior year due to an increase in revenue somewhat offset by higher noninterest expense and loan loss provision expense. Additionally, the provision for income taxes increased $19.7 million in third quarter 2016 compared to the prior year. For the nine months ended September 30, 2016, FHN reported net income available to common shareholders of $167.6 million or $.71 per diluted share compared to a net income of $32.6 million or $.14 per diluted share for the nine months ended September 30, 2015. The improvement in results for the year-to-date period was the result of lower expenses in 2016, discussed below, coupled with an increase in revenue compared to the prior year. The provision for income taxes increased $74.6 million for the year-to-date period of 2016.

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Total revenue increased $45.1 million and $89.7 million, respectively, for the three and nine months ended September 30, 2016 to $333.7 million and $961.9 million. The increase in revenue for both periods was driven by higher fixed income product revenue and an increase in net interest income (“NII”).

Noninterest expense for the three months ended September 30, 2016 and 2015 was $233.6 million and $215.4 million, respectively. The expense increase in third quarter 2016 compared to third quarter 2015 was primarily driven by higher personnel-related expenses within the Fixed Income and Regional Banking operating segments, somewhat offset by a net decline in accruals related to loss contingencies and litigation matters. Noninterest expense for the nine months ended September 30, 2016 and 2015 was $687.3 million and $810.1 million, respectively. The decrease in expense for the year-to-date period was largely the result of a net decline in accruals related to contingencies and litigation matters primarily associated with the 2015 DOJ/HUD settlement of potential claims related to FHN’s underwriting and origination of FHA-insured mortgage loans. Additionally, a $31.6 million mortgage repurchase provision expense reversal recognized in 2016 also favorably impacted expenses, but was somewhat offset by higher personnel expenses in the Fixed Income and Regional Banking segments relative to 2015.

On a consolidated basis, credit quality remained strong in 2016, with non-performing loans, net charge-offs, delinquencies, and the allowance for loan losses all decreasing relative to the prior year. The loan loss provision was $4.0 million in third quarter 2016 compared to $1.0 million in third quarter 2015. For the nine months ended September 30, 2016 and 2015, the loan loss provision was $11.0 million and $8.0 million, respectively.

Return on average common equity and return on average assets for third quarter 2016 were 10.80 percent and .97 percent, respectively, compared to 10.83 percent and .99 percent, respectively, in third quarter 2015. During the nine months ended September 30, 2016, the return on average common equity and the return on average assets were 9.81 percent and ..89 percent, respectively, compared to 2.02 percent and .24 percent, respectively, during the nine months ended September 30, 2015. Common Equity Tier 1, Tier 1, and Total capital ratios were 9.81 percent, 11.03 percent, and 12.09 percent, respectively, in third quarter 2016 compared to 10.71 percent, 12.11 percent, and 13.38 percent, respectively, in third quarter 2015. Average assets increased to $27.6 billion in third quarter 2016 from $25.3 billion in third quarter 2015. Average loans increased 12 percent and 9 percent to $18.7 billion and $17.9 billion, respectively, for the three and nine months ended September 30, 2016 relative to the prior year. Average core deposits increased 11 percent and 10 percent to $20.6 billion and $19.9 billion, respectively, for the three and nine months ended September 30, 2016, relative to the same periods in 2015. Average Shareholders’ equity increased to $2.7 billion in third quarter 2016 from $2.5 billion in third quarter 2015.

BUSINESS LINE REVIEW

Regional Banking

Pre-tax income within the regional banking segment increased to $102.1 million during third quarter 2016 from $85.7 million in third quarter 2015. For the nine months ended September 30, 2016, the regional bank’s pre-tax income was $238.0 million compared to $230.8 million for the nine months ended September 30, 2015. The increase in pre-tax income for the three and nine months ended September 30, 2016 was driven by an increase in revenue which more than offset higher expenses.

Total revenue increased 12 percent, or $27.6 million, to $255.6 million in third quarter 2016, from $228.0 million in third quarter 2015, primarily driven by an increase in NII. The increase in NII was primarily due to higher average balances of commercial loans. Noninterest income increased to $65.1 million in third quarter 2016 from $62.8 million in third quarter 2015. The increase was largely the result of a $1.8 million gain on the sale of properties and higher fee income associated with derivative sales recognized in 2016. Additionally, bankcard income increased in third quarter 2016, relative to the prior year, largely driven by a significant new relationship. A decline in fees from deposit transactions and cash management activities and lower brokerage, management fees, and commission income from the Bank’s wealth management group offset a portion of the increase in revenue. The decrease in fees from deposit transactions and cash management activities was primarily due to lower non-sufficient funds (“NSF”)/overdraft fees in the current year as a result of changes in consumer behavior. The decline in brokerage, management fees, and commission income was the result of market conditions and lower variable annuity sales as practices are adjusted to meet the standards of a changing regulatory environment. Additionally, a shift in product and fee structures caused a temporary decline in revenues but better met client needs and should result in revenue streams over the life of the product.

Provision expense increased to $8.5 million in third quarter 2016 from $6.7 million in third quarter 2015. The increase in provision during third quarter 2016 compared to prior year was primarily driven by increased reserves related to loan growth within the commercial portfolio which was mitigated by continued historically low levels of net charge-offs.

Noninterest expense was $145.0 million in third quarter 2016 up from $135.6 million in third quarter 2015. The expense increase was driven in part by increases in personnel expenses associated with a year-over-year increase in headcount related to the TAB acquisition and higher incentive expense associated with strategic hires and retention initiatives in growth markets. Personnel expenses in 2015 were favorably impacted by gains recognized in third quarter 2015 related to an employee benefit plan amendment

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which also contributed to the year-over-year increase in expenses. These increases were somewhat offset by a $4.3 million reversal of loss accruals related to legal matters recognized in third quarter 2016, as well as a decline in allocated pension expense compared to third quarter 2015 due to a change in the discount rates used in the calculation of pension and postretirement interest costs. Additionally, a decrease in the provision for unfunded commitments also favorably impacted expenses in 2016 relative to the prior year.

Total revenue increased 8 percent to $726.8 million for the nine months ended September 30, 2016 from $674.5 million for the nine months ended September 30, 2015, driven by an increase in NII. The increase in NII was primarily driven by higher average balances of commercial loans, but was somewhat offset by lower yielding commercial loans, a decrease in net interest income associated with payments received on non-performing loans recognized on a cash basis, and lower loan fees. Noninterest income was $185.7 million and $188.9 million for the nine months ended September 30, 2016 and 2015, respectively. The year-to-date decrease in noninterest income was primarily driven by a decline in fees from deposit transactions and cash management activities and lower brokerage, management fees, and commission income, somewhat offset by increases in bankcard income, fee income from derivative sales, and a $1.2 million net increase in gains on the sales of bank properties relative to 2015.

Provision expense for the nine months ended September 30, 2016 increased to $34.2 million from $28.7 million for the nine months ended September 30, 2015. The factors affecting the 2016 quarterly provision expense also drove provision expense for the 2016 year-to-date period.

Noninterest expense was $454.6 million and $415.0 million for the nine months ended September 30, 2016 and 2015, respectively. The increase in expense was largely attributable to a $17.7 million increase in accruals related to loss contingencies and litigation matters and an increase in personnel-related expenses driven by the same factors affecting the quarterly increase in expenses discussed above. Also, FHN recognized a $4.2 million net increase in impairment and lease abandonment charges related to branch closures during the year-to-date period of 2016 which also contributed to the expense increase relative to 2015. These increases were partially offset by a decline in the provision for unfunded commitments, a decrease in expenses associated with foreclosed real estate driven by smaller negative fair value marks recognized in 2016 relative to the prior year, and a decrease in contract employment expenses due in large part to the completion of a large operations efficiency project in 2015.

Fixed Income

Pre-tax income in the fixed income segment was $14.9 million in third quarter 2016 compared to a pre-tax loss of $5.1 million during third quarter 2015. For the nine months ended September 30, 2016, fixed income’s pre-tax income was $44.4 million compared to $15.1 million for the nine months ended September 30, 2015. Fixed income product revenue increased 37 percent to $59.0 million in third quarter 2016 from $43.0 million in third quarter 2015, as average daily revenue (“ADR”) increased to $922 thousand in third quarter 2016 from $671 thousand in third quarter 2015. For the nine months ended September 30, 2016, fixed income product revenue was $185.9 million, up from $143.2 million in the prior year. The increase in fixed income product revenue in both periods reflects more favorable market conditions in 2016 resulting in increased performance across all product sectors, particularly FTN Financial’s agency and mortgage desks. Other product revenue increased to $13.1 million in third quarter 2016 from $8.8 million in third quarter 2015 primarily due to increases in fees from loan sales, derivative sales, and portfolio advisory services. For the nine months ended September 30, 2016 and 2015, other product revenue was $31.4 million and $26.2 million, respectively. The increase in the year-to-date period was driven by the same factors impacting the quarterly increase.

Noninterest expense decreased slightly to $59.6 million in third quarter 2016 from $59.8 million in third quarter 2015, as higher variable compensation expenses connected with the increase in fixed income product revenue in third quarter 2016 were more than offset by an $11.6 million charge to litigation and regulatory matters recognized in third quarter 2015 related to the resolution of a legal matter. Noninterest expense was $181.1 million and $165.8 million for the nine months ended September 30, 2016 and 2015, respectively. Higher variable compensation expenses connected with the increase in fixed income product revenue in 2016 were the primary driver of the expense increase relative to 2015; that increase however, was somewhat offset by the charge in 2015 to litigation and regulatory matters previously mentioned.

Corporate

The pre-tax loss for the corporate segment was $27.9 million and $22.3 million for the quarter ended September 30, 2016 and 2015, respectively, and was $77.0 million and $74.8 million for the nine months ended September 30, 2016 and 2015, respectively.

Net interest expense decreased to $18.2 million in third quarter 2016 from $19.0 million in third quarter 2015 primarily due to a decrease in average term borrowings outstanding. Noninterest income (including securities gain/losses) was $5.1 million in third quarter 2016, down from $8.6 million in third quarter 2015. The decrease in noninterest income was driven by a $5.8 million gain on the extinguishment of junior subordinated notes underlying $200 million of trust preferred debt recognized in third quarter 2015, the impact of which was somewhat offset by an increase in deferred compensation income in 2016 versus 2015. Deferred compensation income fluctuates with changes in the market value of the underlying investments and is mirrored by changes in deferred compensation expense which is included in personnel expense.

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Noninterest expense increased to $14.8 million in third quarter 2016 from $11.8 million in third quarter 2015, primarily driven by an increase in personnel-related expenses due in large part to an increase in deferred compensation expense, which is directionally consistent with the increase in deferred compensation income described above.

Net interest expense decreased to $48.4 million from $52.5 million for the year-to-date period ended September 30, 2016 driven by a decrease in average term borrowings outstanding and a larger AFS securities portfolio. Noninterest income (including securities gain/losses) was $15.8 million for the nine months ended September 30, 2016, compared to $17.8 million for the nine months ended September 30, 2015. The decrease in noninterest income was driven by the third quarter 2015 gain on extinguishment of debt previously mentioned, partially offset by an increase in deferred compensation income and an increase in securities gains. The securities gains increase was primarily the result of a $1.7 million gain recognized in first quarter 2016 on an exchange of approximately $294 million of AFS debt securities.

Noninterest expense was $44.4 million for the nine months ended September 30, 2016 compared to $40.2 million for the nine months ended September 30, 2015. The increase in noninterest expense was largely due to an increase in deferred compensation expense as well as a $2.1 million net increase in negative valuation adjustments associated with derivatives related to prior sales of Visa Class B shares.

Non-Strategic

The non-strategic segment had pre-tax income of $7.1 million in third quarter 2016 compared to $13.9 million in third quarter 2015. For the nine months ended September 30, 2016, the non-strategic segment had pre-tax income of $58.3 million compared to a pre-tax loss of $117.0 million for the nine months ended September 30, 2015. The decline for the quarterly period was driven by an increase in expenses in 2016 and lower revenue. The improvement for the nine months ended September 30, 2016 was driven by a net expense reversal for the year-to-date period which more than offset the decrease in NII.

Total revenue was $16.7 million and $16.4 million in third quarter 2016 and third quarter 2015, respectively. NII declined 27 percent to $10.5 million in third quarter 2016 from $14.3 million in third quarter 2015, consistent with the run-off of the non-strategic loan portfolios. Noninterest income (including securities gains/losses) increased $4.2 million from $2.0 million in third quarter 2015 to $6.2 million in third quarter 2016. The increase in noninterest income was driven by $4.4 million of gains primarily related to recoveries associated with prior legacy mortgage servicing sales.

The provision for loan losses within the non-strategic segment was a provision credit of $4.5 million in third quarter 2016 compared to a provision credit of $5.7 million in the prior year. Overall, the non-strategic segment continues to reflect stable performance combined with lower loan balances as reserves declined $31.7 million to $50.2 million as of September 30, 2016, nearly all of which was within the consumer real estate portfolio. Losses remain historically low as the non-strategic segment had net recoveries in 2016 versus $1.0 million in net charge-offs in third quarter a year ago.

Noninterest expense was $14.2 million in third quarter 2016 compared to $8.2 million in third quarter 2015. The increase in expense was driven by a $5.4 million net increase in accruals related to loss contingencies and litigation matters and higher legal expenses in third quarter 2016 compared to the prior year.

Total revenue was $42.2 million and $51.3 million for the nine months ended September 30, 2016 and 2015, respectively, with NII declining 23 percent to $32.6 million for the 2016 year-to-date period from $42.4 million for the same period of 2015, consistent with the run-off of the non-strategic loan portfolios. Noninterest income (including securities gains/losses) increased to $9.6 million for the nine months ended September 30, 2016 from $9.0 million. The increase in noninterest income was largely attributable to the gain recognized in third quarter 2016 that were primarily related to recoveries associated with prior legacy mortgage servicing sales previously mentioned, partially offset by a gain recognized in second quarter 2015 related to the sale of property.

The provision for loan losses within the non-strategic segment was a provision credit of $23.2 million for the nine months ended September 30, 2016 compared to a provision credit of $20.7 million for the nine months ended September 30, 2015. Overall, the non-strategic segment continues to reflect declining balances, primarily within the consumer real estate portfolio, combined with stable performance within the legacy portfolio. Losses remain historically low as the non-strategic segment had net recoveries for the nine months ended September 30, 2016 versus $3.1 million in net charge-offs a year ago.

Noninterest expense was $7.2 million for the nine months ended September 30, 2016 compared to $189.0 million for the nine months ended September 30, 2015. The decline in noninterest expense was primarily due to $162.5 million of loss accruals recognized in 2015 associated with the settlement reached with DOJ/HUD. Additionally, $31.6 million of mortgage repurchase and foreclosure

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expenses were reversed in 2016 primarily due to the settlements of certain repurchase claims. These transactions which were favorable to the year-over-year variance were somewhat offset by $8.0 million of accruals related to loss contingencies and litigation matters and higher legal expenses recognized in 2016. Generally, most other expense categories declined given the continued wind-down of the legacy businesses.

INCOME STATEMENT REVIEW

Consolidated revenue was $333.7 million in third quarter 2016, a 16 percent increase from $288.7 million in third quarter 2015 largely driven by increases in net interest income and fixed income product revenue. Total expenses increased 8 percent to $233.6 million in third quarter 2016 from $215.4 million in third quarter 2015. The expense increase was primarily due to higher personnel expenses, somewhat offset by a decrease in accruals related to loss contingencies and litigation matters. For the nine months ended September 30, 2016, total consolidated revenue was $961.9 million, up 10 percent from $872.2 million for the nine months ended September 30, 2015, driven by increases in fixed income product revenue and net interest income. Total expenses for the nine months ended September 30, 2016 decreased 15 percent to $687.3 million from $810.1 million for the nine months ended September 30, 2015 primarily driven by a decline in accruals related to loss contingencies and litigation matters and the mortgage repurchase provision expense reversal in 2016 previously mentioned, somewhat offset by higher personnel expenses.

NET INTEREST INCOME

Net interest income increased 13 percent to $185.2 million in third quarter 2016 from $163.6 million in third quarter 2015. For the nine months ended September 30, 2016, NII increased 10 percent to $533.5 million from $487.1 million. For the three and nine months ended September 30, 2016, the increase in NII was the result of loan growth within the regional bank’s portfolios, the favorable impact of the December Fed rate increase, a decline in long-term funding costs, and a larger AFS securities portfolio. These increases were partially offset by the continued run-off of the non-strategic loan portfolios, a decrease in net interest income associated with payments received on non-performing loans recognized on a cash basis, and a decline in the dividend rate on FRB stock compared to 2015. Average earning assets were $25.3 billion and $23.2 billion in third quarters 2016 and 2015, respectively, and $24.8 billion and $23.3 billion for the nine months ended September 30, 2016 and 2015, respectively. The increase in both periods relative to the prior year was primarily driven by loan growth within the regional bank, but was also impacted by a larger securities portfolio and an increase in securities purchased under agreements to resell. These increases were somewhat offset by continued run-off of the non-strategic loan portfolios and a decrease in average balances of excess cash held at the Fed. For the year-to-date period, a decline in average fixed income trading securities also offset a portion of the increase in average earning assets.

For purposes of computing yields and the net interest margin, FHN adjusts net interest income to reflect tax exempt income on an equivalent pre-tax basis which provides comparability of net interest income arising from both taxable and tax-exempt sources. The consolidated net interest margin improved to 2.96 percent in third quarter 2016 from 2.85 percent in third quarter 2015. The net interest spread increased to 2.83 percent in third quarter 2016 from 2.72 percent in third quarter 2015, and the impact of free funding was 13 basis points in both periods. For the nine months ended September 30, 2016, the net interest margin was 2.92 percent, up 8 basis points from 2.84 percent in the comparable period of 2015. The increase in NIM for both the three and nine month periods of 2016 was driven by several factors including the December Fed rate increase, a decrease in average excess cash held at the Fed during 2016, the favorable impact of a decline in long-term funding costs, and larger average balances of loans to mortgage companies. A decrease in interest income associated with payments received on non-performing loans recognized on a cash basis relative to 2015 and run-off of the non-strategic loan portfolios negatively impacted NIM in the quarter and year-to-date periods of 2016.

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Table 1- Net Interest Margin

	Three Months Ended September 30						Nine Months Ended September 30
	2016			2015			2016			2015
Assets:
Earning assets:
Loans, net of unearned income:
Commercial loans		3.63	%		3.50	%		3.60	%		3.53	%
Consumer loans		4.08			3.94			4.08			3.95
Total loans, net of unearned income		3.76			3.65			3.74			3.68
Loans held-for-sale		4.36			4.16			4.23			4.22
Investment securities:
U.S. treasuries		0.97			0.97			0.98			0.97
U.S. government agencies		2.34			2.45			2.40			2.46
States and municipalities (a)		9.01			2.84			7.55			3.03
Corporate bonds		5.25			—			5.25			—
Other (b)		2.44			4.10			2.50			4.10
Total investment securities		2.36			2.54			2.42			2.54
Trading securities		2.46			2.98			2.65			2.80
Other earning assets:
Federal funds sold		0.99			1.00			1.12			0.99
Securities purchased under agreements to resell (c)		0.08			(0.06	)		0.11			(0.11	)
Interest bearing cash		0.49			0.24			0.49			0.24
Total other earning assets		0.25			0.12			0.29			0.10
Interest income / total earning assets		3.30	%		3.20	%		3.27	%		3.19	%
Liabilities:
Interest-bearing liabilities:
Interest-bearing deposits:
Savings		0.23	%		0.15	%		0.22	%		0.16	%
Other interest-bearing deposits		0.19			0.09			0.18			0.09
Time deposits		0.59			0.65			0.59			0.68
Total interest-bearing core deposits		0.23			0.15			0.23			0.17
Certificates of deposit $100,000 and more		1.06			0.85			1.00			0.84
Federal funds purchased		0.52			0.25			0.51			0.25
Securities sold under agreements to repurchase		0.09			0.04			0.09			0.06
Fixed income trading liabilities		1.76			2.34			1.91			2.21
Other short-term borrowings		0.61			0.84			0.70			0.64
Term borrowings		2.67			2.55			2.52			2.47
Interest expense / total interest-bearing liabilities		0.47			0.48			0.48			0.49
Net interest spread		2.83	%		2.72	%		2.79	%		2.70	%
Effect of interest-free sources used to fund earning assets		0.13			0.13			0.13			0.14
Net interest margin (d)		2.96	%		2.85	%		2.92	%		2.84	%

(a) 2016 increases driven by payoff of lower-yielding municipal bonds in fourth quarter 2015.

(b) 2016 decreases driven by a decline in the dividend rate of FHN’s holdings of federal reserve bank stock.

(c) 2015 rates driven by negative market rates on reverse repurchase agreements.

(d) Calculated using total net interest income adjusted for FTE assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.

FHN’s net interest margin is primarily impacted by balance sheet factors such as interest-bearing cash levels, deposit balances, trading inventory, commercial loan volume, as well as loan fees, cash basis income, and changes in short-term interest rates. FHN’s balance sheet is positioned to benefit primarily from a rise in short-term interest rates. For fourth quarter 2016 and into 2017, an increase in NIM will depend on the extent of Fed interest rate increases, as well as levels of interest-bearing cash and trading inventory balances.

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PROVISION FOR LOAN LOSSES

The provision for loan losses is the charge to earnings that management determines to be necessary to maintain the ALLL at a sufficient level reflecting management’s estimate of probable incurred losses in the loan portfolio. The provision for loan losses was $4.0 million in third quarter 2016 compared to $1.0 million in third quarter 2015. For the nine months ended September 30, 2016 and 2015, the provision for loan losses was $11.0 million and $8.0 million, respectively. In third quarter 2016 aggregate performance of the loan portfolio remained strong and the balances of legacy loan portfolios declined $447.3 million resulting in a decline in the allowance for loan losses of 4 percent (on a period-end basis). Although asset quality metrics were strong in both periods, improvement slowed in 2016 and the commercial loan growth partially offset the positive effect of improvement on the allowance. For additional information about the provision for loan losses refer to the Regional Banking and Non-Strategic sections of the Business Line Review section in this MD&A. For additional information about general asset quality trends refer to Asset Quality - Trend Analysis of Third Quarter 2016 Compared to Third Quarter 2015 in this MD&A.

NONINTEREST INCOME

Noninterest income (including securities gains/(losses)) was $148.5 million in third quarter 2016 and represented 45 percent of total revenue compared to $125.1 million in third quarter 2015 and 43 percent of total revenue. For the nine months ended September 30, 2016, noninterest income was $428.4 million and represented 45 percent of total revenue compared to $385.1 million and 44 percent of total revenue for the nine months ended September 30, 2015. The increase in noninterest income for both periods was primarily driven by higher fixed income product revenue.

Fixed Income Noninterest Income

Fixed income noninterest income increased 38 percent in third quarter 2016 to $71.7 million from $51.8 million in third quarter 2015. For the nine months ended September 30, 2016 and 2015, fixed income noninterest income was $216.6 million and $169.7 million, respectively, representing a 28 percent increase. Fixed income product revenue was up in both periods reflecting more favorable market conditions in 2016 resulting in increased performance across all product sectors, particularly FTN Financial’s agency and mortgage desks. Revenue from other products increased to $12.7 million and $30.8 million for the three and nine months ended September 30, 2016 from $8.8 million and $26.5 million for the three and nine months ended September 30, 2015, largely driven by increases in fees from loan sales, derivative sales, and portfolio advisory services. The following table summarizes FHN’s fixed income noninterest income for the three and nine months ended September 30, 2016 and 2015.

Table 2 - Fixed Income Noninterest Income

	Three Months Ended September 30				Percent			Nine Months Ended September 30				Percent
(Dollars in thousands)	2016		2015		Change			2016		2015		Change
Noninterest income:
Fixed income	$	59,003	$	42,969		37	%	$	185,865	$	143,164		30	%
Other product revenue		12,745		8,835		44	%		30,773		26,500		16	%
Total fixed income noninterest income	$	71,748	$	51,804		38	%	$	216,638	$	169,664		28	%

Deposit Transactions and Cash Management

Fees from deposit transactions and cash management activities were $27.2 million and $81.0 million during the three and nine months ended September 30, 2016 down from $28.9 million and $83.9 million for the three and nine months ended September 30, 2015. The decrease in both periods was primarily driven by lower NSF fee income driven by changes in consumer behavior.

Brokerage, Management Fees and Commissions

Income from brokerage, management fees and commissions was $10.8 million in third quarter 2016, down 7 percent from $11.6 million in third quarter 2015. For the nine months ended September 30, 2016, income from brokerage, management fees and commissions was $31.9 million, a 10 percent decline from $35.5 million for the nine months ended September 30, 2015. The decline in income in both periods was primarily driven by a reduction in annuity income as a result of market conditions and lower variable annuity sales as practices are adjusted to meet the standards of a changing regulatory environment. The decline was also affected by a shift in product and fee structures, which caused a temporary decline in revenues but better met client needs and should result in revenue streams over the life of the product.

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Bankcard Income

Bankcard income increased 13 percent and 9 percent to $6.3 million and $18.1 million for the three and nine months ended September 30, 2016, respectively, from $5.6 million and $16.6 million for the three and nine months ended September 30, 2015. The increase in bankcard income was primarily driven by a significant new relationship.

Securities Gains/(Losses)

Securities gains/(losses) for the three months ended September 30, 2016 and 2015 were not material. For the nine months ended September 30, 2016, FHN recognized net securities gains of $1.5 million which was primarily the result of a $1.7 million gain on an exchange of approximately $294 million of AFS debt securities. Securities gains/(losses) for the nine months ended September 30, 2015, were not material.

Other Noninterest Income

Other income includes revenues from ATM and interchange fees, electronic banking fees, mortgage banking, revenue related to deferred compensation plans (which are mirrored by changes in noninterest expense), gains/(losses) from the extinguishment of debt and various other fees.

Revenue from all other income and commissions was $17.5 million and $36.4 million for the three and nine months ended September 30, 2016 compared to $13.3 million and $37.1 million for the three and nine months ended September 30, 2015. For the third quarter 2016 all other income and commissions was favorably impacted by increases in mortgage banking and deferred compensation income, a $1.8 million gain on the sales of properties, and higher fee income associated with derivative sales. These increases were somewhat offset by a $5.8 million gain on the extinguishment of junior subordinated notes underlying $200 million of trust preferred debt recognized in third quarter 2015. The increase in Mortgage banking income was largely driven by recoveries recognized in third quarter 2016 associated with prior legacy mortgage servicing sales. Deferred compensation income fluctuates with changes in the market value of the underlying investments and is mirrored by changes in deferred compensation expense which is included in personnel expense.

For the nine months ended September 30, 2016, the same factors driving the increases in Mortgage banking and deferred compensation income also favorably impacted other income and commissions relative to the prior year, but were offset by the $5.8 million gain on the extinguishment of debt previously mentioned and a $1.5 million net decrease in gains on the sale of properties. The following table provides detail regarding FHN’s other income.

Table 3 - Other Income

	Three Months Ended September 30					Nine Months Ended September 30
(Dollars in thousands)	2016		2015			2016		2015
Other income:
Mortgage banking	$	5,524	$	761		$	7,395	$	2,721
ATM interchange fees		3,081		2,998			8,918		8,784
Electronic banking fees		1,398		1,479			4,176		4,366
Deferred compensation (a)		1,038		(2,309	)		2,162		(1,311	)
Letter of credit fees		981		978			3,157		3,633
Gain on extinguishment of debt		—		5,794			—		5,794
Other		5,518		3,550			10,594		13,096
Total	$	17,540	$	13,251		$	36,402	$	37,083

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) Deferred compensation market value adjustments are mirrored by changes in deferred compensation expense which is included in employee compensation, incentives, and benefits expense.

NONINTEREST EXPENSE

Noninterest expense was $233.6 million in third quarter 2016 compared to $215.4 million in third quarter 2015. The increase in noninterest expense was primarily driven by higher personnel expenses, partially offset by a decline in accruals related to loss contingencies and litigation matters recognized in third quarter 2016 relative to the prior year.

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For the nine months ended September 30, 2016, noninterest expense was $687.3 million compared to $810.1 million for the nine months ended September 30, 2015. The decrease in noninterest expense for the year-to-date period was primarily the result of a reduction in accruals related to loss contingencies and litigation matters and, to a lesser extent, a mortgage repurchase and foreclosure provision expense reversal recognized in second quarter 2016, somewhat offset by higher personnel expenses and an increase in other noninterest expense.

Employee Compensation, Incentives, and Benefits

Employee compensation, incentives, and benefits (personnel expense), which is generally the largest component of noninterest expense, increased 25 percent, or $28.9 million, to $145.1 million in third quarter 2016 from $116.2 million in third quarter 2015. For the nine months ended September 30, 2016, personnel expense increased 13 percent, or $50.0 million, to $425.6 million. The increase in personnel expense for both the quarterly and year-to-date periods was primarily driven by an increase in variable compensation associated with higher fixed income product sales revenue. A year-over-year increase in headcount related to the TAF acquisition, higher incentive expense associated with strategic hires and retention initiatives within the regional bank, and higher deferred compensation expenses in the current year relative to 2015 also contributed to the increase in personnel expense in 2016. Personnel expenses in 2015 were favorably impacted by an $8.3 million gain related to an amendment of certain employee benefit plans recognized in third quarter 2015 which also contributed to the year-over-year increase in personnel expenses. These increases were partially offset by a decline in pension expense relative to 2015 due to a change in the discount rates used in the calculation of pension and postretirement interest costs.

Equipment Rentals, Depreciation, and Maintenance

Equipment rentals, depreciation, and maintenance expense declined 14 percent and 13 percent, respectively in the three and nine months ended September 30, 2016 to $6.1 million and $19.4 million. The decrease for both the quarterly and year-to-date periods was driven by a decrease in depreciation expense and refunds from an equipment rental vendor recognized in third quarter 2016.

Advertising and Public Relations

Expenses associated with advertising and public relations were $6.1 million in third quarter 2016, up from $4.8 million in third quarter 2015. For the nine months ended September 30, 2016 and 2015 advertising and public relations expense was $15.5 million and $13.9 million, respectively. In third quarter 2016, FHN recognized higher advertising and public relations expense due in large part to a promotional branding campaign which contributed to an increase in both the quarter and year-to-date periods.

Legal Fees

Legal fees increased to $4.8 million in third quarter 2016 from $3.6 million in third quarter 2015. For the year-to-date periods, legal expense was $15.5 million in 2016 compared to $11.7 million in 2015. Legal fees fluctuate quarterly based on the status and composition of cases.

Contract Employment and Outsourcing

Expenses associated with contract employment and outsourcing were $2.4 million in third quarter 2016, down from $3.4 million in third quarter 2015. For the nine months ended September 30, 2016, contract employment and outsourcing expenses were $7.4 million, down from $11.3 million for the nine months ended September 30, 2015. The decrease was attributable to a lower number of technology-related projects in 2016 relative to the prior year coupled with the completion of a large operations efficiency project in 2015.

Repurchase and Foreclosure Provision

For the three months ended September 30, 2016, the mortgage repurchase and foreclosure provision was not material. For the nine months ended September 30, 2016, FHN recognized a $31.6 million pre-tax expense reversal of mortgage repurchase and foreclosure provision primarily as a result of the settlement of certain repurchase claims in second quarter 2016, which favorably impacted expenses for the year-to-date period of 2016. The mortgage repurchase and foreclosure provision was $0 for both the quarter and year-to-date periods in 2015.

Other Noninterest Expense

All other expenses decreased to $16.5 million in third quarter 2016 from $27.1 million in third quarter 2015, primarily driven by a $10.7 million decline in accruals related to loss contingencies and litigation matters. For the nine months ended September 30, 2016,

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all other expenses were $79.8 million compared to $220.8 million for the nine months ended September 30, 2015 and were primarily driven by a $147.6 million net decline in litigation-related loss accruals largely associated with the 2015 DOJ/HUD settlement previously mentioned. FHN recognized a $4.5 million net increase in fixed asset impairments and lease abandonment charges related to branch closures in 2016 from the prior year which offset a portion of the expense decline for the year-to-date periods of 2016 compared to 2015. Additionally, a $2.1 million increase in negative valuation adjustments associated with derivatives related to prior sales of Visa Class B shares resulted in higher expenses in 2016. The following table provides detail regarding FHN’s other expenses.

Table 4 - Other Expense

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in thousands)	2016		2015		2016		2015
Other expense:
Travel and entertainment	$	2,478	$	2,451	$	7,035	$	6,697
Customer relations		1,442		1,477		4,804		4,296
Employee training and dues		1,360		1,272		4,088		3,853
Supplies		1,158		974		3,114		2,781
Tax credit investments		788		439		2,325		1,383
Miscellaneous loan costs		676		726		1,958		1,821
Litigation and regulatory matters		260		10,922		25,785		173,422
Other		8,326		8,835		30,669		26,565
Total	$	16,488	$	27,096	$	79,778	$	220,818

Certain previously reported amounts have been reclassified to agree with current presentation.

INCOME TAXES

FHN recorded an income tax provision of $28.5 million in third quarter 2016, compared to $8.9 million in third quarter 2015. For the nine months ended September 30, 2016, FHN recorded an income tax provision of $82.8 million compared to $8.2 million for the nine months ended September 30, 2015. The effective tax rates for the quarters ended September 30, 2016 and 2015 were approximately 30 percent and 12 percent, respectively. For the nine months ended September 30, 2016 and 2015 the effective tax rates were approximately 31 percent and 15 percent, respectively. Since pre-tax income is the most important component in determining the effective tax rate, the comparison of the tax rate from period to period, by itself, will not provide meaningful information unless pre-tax income is fairly consistent. The company’s effective tax rate is favorably affected by recurring items such as bank-owned life insurance, tax-exempt income, and credits and other tax benefits from affordable housing investments. The company’s effective tax rate also may be affected by items that may occur in any given period but are not consistent from period to period, such as changes in the deferred tax asset valuation allowance and changes in unrecognized tax benefits. The increase in the effective tax rates in the quarterly and year-to-date periods of 2016 compared to the same periods of 2015 was primarily driven by the change in pre-tax income levels. For third quarter 2016 the increase in the effective tax rate was also due to a decline in negative discrete tax benefits relative to third quarter 2015.

A deferred tax asset (“DTA”) or deferred tax liability (“DTL”) is recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax consequence is calculated by applying enacted statutory tax rates, applicable to future years, to these temporary differences. As of September 30, 2016, FHN’s gross DTA (net of a valuation allowance) and gross DTL were $289.2 million and $132.0 million, respectively, resulting in a net DTA of $157.2 million at September 30, 2016, compared with $233.4 million at September 30, 2015. The decline in the DTA in third quarter 2016, relative to third quarter 2015, was primarily driven by an increase in unrealized gains within the available-for-sale securities portfolio, funding of FHN’s pension plan, and a decline in loss reserves.

As of September 30, 2016, FHN had federal tax credit carryforwards which will expire in varying amounts between 2030 and 2035, state income tax net operating loss (“NOL”) carryforwards which will expire in varying amounts between 2016 and 2035, and federal capital loss carryforwards, which will expire in 2017. As of September 30, 2016 and 2015, FHN established a valuation allowance of $40.3 million and $40.4 million, respectively, against its federal capital loss carryforwards. FHN’s DTA after valuation allowance was $289.2 million and $347.5 million as of September 30, 2016 and 2015, respectively. Based on current analysis, FHN believes that its ability to realize the remaining DTA is more likely than not. FHN monitors its DTA and the need for a valuation allowance on a quarterly basis. A significant adverse change in FHN’s taxable earnings outlook could result in the need for further valuation allowances. In the event FHN is able to determine that the deferred tax assets are realizable in the future in excess of their net recorded amount, FHN would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.

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STATEMENT OF CONDITION REVIEW

Total period-end assets were $28.4 billion on September 30, 2016, up 12 percent and 9 percent, respectively from $25.4 billion on September 30, 2015 and $26.2 billion on December 31, 2015. Average assets increased to $27.6 billion in third quarter 2016 from $25.3 billion in third quarter 2015 and $26.2 billion in fourth quarter 2015. The increase in average assets compared to third quarter 2015 is primarily attributable to increases in the loan portfolios. A larger investment securities portfolio also contributed to the increase in assets relative to third quarter 2015, but was somewhat offset by a decline in interest-bearing cash. Generally, the same line items driving the year-over-year increase in average assets drove the increase in average assets compared to fourth quarter 2015; however, the trading portfolio decreased between third quarter 2016 and fourth quarter 2015.

EARNING ASSETS

Earning assets consist of loans, investment securities, other earning assets such as trading securities, interest-bearing cash, and loans HFS. Average earning assets increased to $25.3 billion in third quarter 2016 from $23.2 billion a year earlier and $23.9 billion in fourth quarter 2015. A more detailed discussion of the major line items follows.

Loans

Period-end loans increased to $19.6 billion as of September 30, 2016 from $16.7 billion on September 30, 2015 and $17.7 billion on December 31, 2015. Average loans for third quarter 2016 were $18.7 billion compared to $16.6 billion for third quarter 2015 and $16.9 billion for fourth quarter 2015. The increase in average and period-end loan balances was primarily due to loan growth within the regional bank’s commercial portfolios and also loans added through the TAB acquisition in fourth quarter 2015, partially offset by run-off of portfolios within the non-strategic segment. On a period-end basis loans added through the third quarter 2016 GE Capital purchase also contributed to the increase in loans.

Table 5 - Average Loans

	Quarter Ended					Quarter Ended					Quarter Ended
	September 30, 2016					September 30, 2015					December 31, 2015
			Percent of total					Percent of total					Percent of total			3Q16 changes vs
(Dollars in thousands)	Amount					Amount					Amount					3Q15			4Q15
Commercial:
Commercial, financial, and industrial	$	11,281,691		60	%	$	9,539,650		57	%	$	9,720,115		57	%		18	%		16	%
Commercial real estate		1,997,121		11			1,425,528		9			1,612,730		10			40	%		24	%
Total commercial		13,278,812		71			10,965,178		66			11,332,845		67			21	%		17	%
Consumer:
Consumer real estate (a)		4,601,420		25			4,838,984		29			4,798,067		28			(5	)%		(4	)%
Permanent mortgage		436,952		2			475,684		3			455,299		3			(8	)%		(4	)%
Credit card, OTC and other		362,166		2			353,148		2			356,948		2			3	%		1	%
Total consumer		5,400,538		29			5,667,816		34			5,610,314		33			(5	)%		(4	)%
Total loans, net of unearned income	$	18,679,350		100	%	$	16,632,994		100	%	$	16,943,159		100	%		12	%		10	%

(a) Balances as of September 30, 2016 and 2015, and December 31, 2015, include $40.8 million, $63.2 million, and $56.0 million of restricted loans, respectively.

C&I loans are the largest component of the commercial portfolio comprising 85 percent and 87 percent of average commercial loans in third quarter 2016 and 2015, respectively. C&I loans increased 18 percent, or $1.7 billion, from third quarter 2015 due to net loan growth within several of the regional bank’s portfolios including general commercial, corporate, correspondent banking, and franchise finance, as well as higher average balances of loans to mortgage companies. Commercial real estate loans increased 40 percent or $.6 billion to $2.0 billion in third quarter 2016 because of growth in expansion markets and with increased funding under existing commitments. In addition, the fourth quarter 2015 TAB acquisition contributed to the increase.

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Average consumer loans declined 5 percent, or $.3 billion, from a year ago to $5.4 billion in third quarter 2016. The consumer real estate portfolio (home equity lines and installment loans) declined $237.6 million, to $4.6 billion, as the continued wind-down of portfolios within the non-strategic segment outpaced a $231.4 million increase in real estate installment loans from new originations within the regional bank. The permanent mortgage portfolio slightly declined to $437.0 million in third quarter 2016 driven by run-off of legacy assets within non-strategic offset by some growth in mortgage loans within regional banking. Credit Card and Other slightly increased to $362.2 million in third quarter 2016.

Investment Securities

FHN’s investment portfolio consists principally of debt securities including government agency issued mortgage-backed securities (“MBS”) and government agency issued collateralized mortgage obligations (“CMO”), substantially all of which are classified as available-for-sale (“AFS”). FHN utilizes the securities portfolio as a source of income, liquidity and collateral for repurchase agreements, for public funds, and as a tool for managing risk of interest rate movements. Period-end investment securities increased 10 percent and 2 percent, respectively, from $3.7 billion on September 30, 2015 and $3.9 billion on December 31, 2015 to $4.0 billion on September 30, 2016. Average investment securities were $4.0 billion in third quarter 2016 compared to $3.7 billion in third quarter 2015 and $3.8 billion in fourth quarter 2015. Average investment securities represented 16 percent of earning assets in 2016 and 2015. The amount of securities purchased for the investment portfolio is largely driven by the desire to protect the value of non-rate sensitive liabilities and equity and maximize yield on FHN’s excess liquidity without negatively affecting future yields while operating in this historically low interest rate environment.

Loans Held-for-Sale

Loans HFS consists of the mortgage warehouse (primarily repurchased government-guaranteed loans), small business, student, and home equity loans. The average balance of loans HFS increased to $132.4 million in third quarter 2016 from $126.1 million in third quarter 2015. On September 30, 2016 and 2015, loans HFS were $155.2 million and $124.3 million, respectively. The increase in both average and period-end loans HFS was largely driven by an increase in small business loans, partially offset by a smaller mortgage warehouse, and to a lesser extent declines in home equity and student loans.

Other Earning Assets

Other earning assets include trading securities, securities purchased under agreements to resell, federal funds sold (“FFS”), and interest-bearing deposits with the Fed and other financial institutions. Other earning assets decreased $258.6 million from third quarter 2015 and averaged $2.5 billion in third quarter 2016. The decrease was primarily driven by a decrease in interest bearing cash, but was somewhat offset by increases in securities purchased under agreements to resell (“asset repos”) and trading securities. Interest bearing cash was used to fund loan growth and purchases of AFS securities. Asset repos are used in fixed income trading activity and generally fluctuate with the level of fixed income trading liabilities (short-positions) as securities collateral from repo transactions are used to fulfill trades. Fixed income’s trading inventory fluctuates daily based on customer demand. Other earning assets were $2.4 billion and $2.7 billion on September 30, 2016 and 2015, respectively, and $2.2 billion on December 31, 2015. The increase in other earning assets on a period-end basis relative to December 31, 2015 was primarily due to increases in fixed income trading inventory levels and asset repos, somewhat offset by lower levels of interest-bearing cash on September 30, 2016.

Non-earning assets

Period-end non-earning assets increased to $2.3 billion on September 30, 2016 from $2.2 billion on September 30, 2015.

Core Deposits

Average core deposits were $20.6 billion during third quarter 2016, up 11 percent from $18.5 billion during third quarter 2015. The increase in average core deposits was driven by several factors including FHN’s decision to increase deposits in a third party network deposits sweep program, an increase in commercial customer deposits, and the addition of deposits associated with the fourth quarter 2015 TAB acquisition. The third party deposits program is an FDIC-insured deposit sweep program where financial institutions can receive unsecured deposits for the long-term (several years) and in larger-dollar increments. Period-end core deposits were $21.0 billion on September 30, 2016, up 13 percent from $18.6 billion on September 30, 2015.

Short-Term Funds

Average short-term funds (certificates of deposit greater than $100,000, FFP, securities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) increased 21 percent to $2.5 billion in third quarter 2016 from $2.1 billion in third quarter 2015. The increase was largely driven by increases in CDs greater than $100,000 and an increase in FHLB borrowings as a result of

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increased loan demand. CDs greater than $100,000 increased $164.3 million to $518.6 million in third quarter 2016 from third quarter 2015 due in large part to the TAB acquisition in fourth quarter 2015. To a lesser extent increases in FFP and securities sold under agreements to repurchase also contributed to the year-over-year increase as additional sources of wholesale funding were used to fund loan growth. On average, short-term purchased funds accounted for 10 percent and 9 percent of FHN’s funding (core deposits plus short-term purchased funds and term borrowings) in third quarter 2016 and 2015, respectively. Period-end short-term funds were $3.0 billion and $2.0 billion on September 30, 2016 and 2015, respectively. The increase in period-end balances was primarily driven by increases in FHLB borrowings and CDs greater than $100,000.

Term Borrowings

Term borrowings include senior and subordinated borrowings with original maturities greater than one year. Term borrowings were $1.1 billion on September 30, 2016 compared to $1.3 billion on September 30, 2015. Average term borrowings were $1.1 billion in third quarter 2016 compared to $1.5 billion in third quarter 2015. The decrease in average term borrowings primarily relates to $206 million of junior subordinated notes underlying $200 million of trust preferred debt that were called in third quarter 2015 and $250 million of FTBNA subordinated notes that matured in second quarter 2016.

Other Liabilities

Period-end other liabilities decreased to $.7 billion on September 30, 2016 from $.9 billion on September 30, 2015. Other liabilities decreased as the pension liability was reduced as a result of the third quarter 2016 $165 million qualified pension plan contribution. The qualified pension plan is now reflected as a prepaid pension asset. Additionally a decrease in the repurchase and foreclosure reserve also contributed to the year-over-year decline in other liabilities.

CAPITAL

Management’s objectives are to provide capital sufficient to cover the risks inherent in FHN’s businesses, to maintain excess capital to well-capitalized standards, and to assure ready access to the capital markets. Average equity was $2.7 billion in third quarter 2016 compared to $2.5 billion in third quarter 2015. Period-end equity increased $164.3 million from September 30, 2015 to $2.7 billion on September 30, 2016. The increase in period-end and average equity was primarily due to net income recognized since third quarter 2015 and $72.8 million of equity issued related to the TAF acquisition in October 2015. Additionally, an increase in unrealized gains associated with the AFS securities portfolio also increased period-end and average equity, but was somewhat offset by common and preferred dividends paid, share repurchases (discussed below), and an increase of net pension underfunding.

In January 2014, FHN’s board of directors approved a share repurchase program which enables FHN to repurchase its common stock in the open market or in privately negotiated transactions, subject to certain conditions. In July 2015 and April 2016 the board increased and extended that program. The current program authorizes total purchases of up to $350 million and expires on January 31, 2018. During third quarter 2016, FHN repurchased $7.1 million of common shares under the program; during third quarter 2015, FHN did not repurchase any shares. Total purchases under this program through September 30, 2016 were $160.3 million.

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The following tables provide a reconciliation of Shareholders’ equity from the Consolidated Condensed Statements of Condition to Common Equity Tier 1, Tier 1 and Total Regulatory Capital as well as certain selected capital ratios:

Table 6 - Regulatory Capital and Ratios

(Dollars in thousands)	September 30, 2016			September 30, 2015			December 31, 2015
Shareholders’ equity	$	2,449,151		$	2,284,814		$	2,344,155
FHN Non-cumulative perpetual preferred		(95,624	)		(95,624	)		(95,624	)
Common equity	$	2,353,527		$	2,189,190		$	2,248,531
Regulatory adjustments:
Goodwill and other intangibles		(166,693	)		(120,930	)		(165,661	)
Net unrealized (gains)/losses on securities		(50,704	)		(32,196	)		(3,394	)
Minimum pension liability		214,653			208,588			217,586
Net unrealized (gains)/losses on cash flow hedges		(3,121	)		—			—
Disallowed deferred tax assets		(20,281	)		(18,463	)		(18,404	)
Other		(1,174	)		—			(78	)
Common equity tier 1	$	2,326,207		$	2,226,189		$	2,278,580
FHN Non-cumulative perpetual preferred		95,624			95,624			95,624
Qualifying noncontrolling interest - FTBNA preferred stock		257,192			260,456			260,794
Other deductions from tier 1		(63,574	)		(66,075	)		(62,857	)
Tier 1 capital	$	2,615,449		$	2,516,194		$	2,572,141
Tier 2 capital		252,988			265,160			264,574
Total regulatory capital	$	2,868,437		$	2,781,354		$	2,836,715

	September 30, 2016					September 30, 2015					December 31, 2015
	Ratio			Amount		Ratio			Amount		Ratio			Amount
Common Equity Tier 1
First Horizon National Corporation		9.81	%	$	2,326,207		10.71	%	$	2,226,189		10.45	%	$	2,278,580
First Tennessee Bank National Association		9.78			2,271,433		10.81			2,176,646		10.81			2,284,646
Tier 1
First Horizon National Corporation		11.03			2,615,449		12.11			2,516,194		11.79			2,572,141
First Tennessee Bank National Association		10.80			2,508,584		11.99			2,414,208		11.95			2,525,912
Total
First Horizon National Corporation		12.09			2,868,437		13.38			2,781,354		13.01			2,836,715
First Tennessee Bank National Association		11.76			2,731,397		13.21			2,658,897		13.09			2,768,625
Tier 1 Leverage
First Horizon National Corporation		9.52			2,615,449		9.95			2,516,194		9.85			2,572,141
First Tennessee Bank National Association		9.43			2,508,584		9.96			2,414,208		10.06			2,525,912
Risk-Weighted Assets
First Horizon National Corporation					23,716,102					20,783,031					21,812,015
First Tennessee Bank National Association					23,235,526					20,127,008					21,143,459
Average Assets for Leverage
First Horizon National Corporation					27,481,309					25,280,856					26,109,449
First Tennessee Bank National Association					26,597,240					24,244,742					25,105,163

Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this MD&A include: Common Equity Tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; Tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that

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cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets (“RWA”), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

Banking regulators define minimum capital ratios for bank holding companies and their bank subsidiaries. Based on the capital rules and definitions prescribed by the banking regulators, should any depository institution’s capital ratios decline below predetermined levels, it would become subject to a series of increasingly restrictive regulatory actions. The system categorizes a depository institution’s capital position into one of five categories ranging from well-capitalized to critically under-capitalized. In third quarter 2016, for an institution the size of FHN to qualify as well-capitalized, Common Equity Tier 1, Tier 1 Capital, Total Capital, and Leverage capital ratios must be at least 6.5 percent, 8 percent, 10 percent, and 5 percent, respectively. As of September 30, 2016, FHN and FTBNA had sufficient capital to qualify as a well-capitalized institution. Regulatory capital ratios decreased in third quarter 2016 relative to third quarter 2015 and fourth quarter 2015 due primarily to increases in risk-weighted assets from growth in earning assets, share repurchases and the phased-in implementation of the Basel III regulations partially offset by the impact of net income less dividends. For fourth quarter 2016 and through 2017, capital ratios are expected to remain significantly above well-capitalized standards.

Stress Testing

In March, 2014, the OCC, Federal Reserve, and FDIC issued final supervisory guidance for stress tests pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Reform Act”). Under these requirements, bank holding companies with $10 billion to $50 billion in assets must conduct an annual stress test to determine whether capital is likely to be adequate to absorb losses under hypothetical economic scenarios provided by the regulators.

In July 2016, FHN submitted results of its annual Dodd-Frank Act Stress Test, commonly known as DFAST, to the OCC and the Federal Reserve. A summary of the results was posted in October 2016 to FHN’s investor relations website. (Neither FHN’s stress test posting, nor any other material found on FHN’s website generally, is part of this quarterly report or incorporated herein.)

Pursuant to board authority, FHN may repurchase shares of its common stock from time to time and will evaluate the level of capital and take action designed to generate or use capital, as appropriate, for the interests of the shareholders, subject to legal and regulatory restrictions. FHN’s board has not authorized a preferred stock purchase program. The following tables provide information related to securities repurchased by FHN during third quarter 2016:

Table 7 - Issuer Purchases of Common Stock

Compensation Plan-Related Repurchase Authority:

(Volume in thousands, except per share data)	Total number of shares purchased			Average price paid per share		Total number of shares purchased as part of publicly announced programs			Maximum number of shares that may yet be purchased under the programs
2016
July 1 to July 31		1		$	13.98		1			28,349
August 1 to August 31		1		$	14.96		1			28,348
September 1 to September 30			*	$	15.11			*		28,348
Total		2		$	14.58		2

* - amount less than 500 shares

Compensation Plan Programs:

• A consolidated compensation plan share purchase program was announced on August 6, 2004. This plan consolidated into a single share purchase program all of the previously authorized compensation plan share programs as well as the renewal of the authorization to purchase shares for use in connection with two compensation plans for which the share purchase authority had expired. The total amount authorized under this consolidated compensation plan share purchase program, inclusive of a program amendment on April 24, 2006, is 29.6 million shares calculated before adjusting for stock dividends distributed through January 1, 2011. The authorization has been reduced for that portion which relates to compensation plans for which no options remain outstanding. The shares may be purchased over the option exercise period of the various compensation plans on or before December 31, 2023. On September 30, 2016, the maximum number of shares that may be purchased under the program was 28.3 million shares. Purchases may be made in the open market or through privately negotiated transactions and are subject to market conditions, accumulation of excess equity, prudent capital management, and legal and regulatory restrictions. Management currently does not anticipate purchasing a material number of shares under this authority during fourth quarter 2016 or through 2017.

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Other Repurchase Authority:

(Dollar values and volume in thousands, except per share  data)	Total number of shares purchased		Average price paid per share (a)		Total number of shares purchased as part of publicly announced programs		Maximum approximate dollar value that may yet be purchased under the programs
2016
July 1 to July 31		—		N/A		—	$	196,756
August 1 to August 31		—		N/A		—	$	196,756
September 1 to September 30		468	$	15.10		468	$	189,690
Total		468	$	15.10		468

N/A - Not applicable

(a) Represents total costs including commissions paid.

Other Programs:

• On January 22, 2014, FHN announced a $100 million share purchase authority with an expiration date of January 31, 2016. On July 21, 2015, FHN announced a $100 million increase in that authority along with an extension of the expiration date to January 31, 2017, and on April 26, 2016, FHN announced a $150 million increase and further extension to January 31, 2018. As of September 30, 2016, $160.3 million in purchases had been made under this authority at an average price per share of $12.86, $12.84 excluding commissions. Purchases may be made in the open market or through privately negotiated transactions and are subject to market conditions, accumulation of excess equity, prudent capital management, and legal and regulatory restrictions.

ASSET QUALITY - TREND ANALYSIS OF THIRD QUARTER 2016 COMPARED TO THIRD QUARTER 2015

Loan Portfolio Composition

FHN groups its loans into portfolio segments based on internal classifications reflecting the manner in which the ALLL is established and how credit risk is measured, monitored, and reported. From time to time, and if conditions are such that certain subsegments are uniquely affected by economic or market conditions or are experiencing greater deterioration than other components of the loan portfolio, management may determine the ALLL at a more granular level. Commercial loans are composed of commercial, financial, and industrial (“C&I”) and commercial real estate (“CRE”). Consumer loans are composed of consumer real estate; permanent mortgage; and credit card and other. FHN has a concentration of residential real estate loans (26 percent of total loans), the majority of which is in the consumer real estate portfolio (23 percent of total loans). Industry concentrations are discussed under the heading C&I below. Consolidated key asset quality metrics for each of these portfolios can be found in Table 15 – Asset Quality by Portfolio.

As economic and real estate conditions change, enhancements to underwriting and credit policies and guidelines may be necessary or desirable. Credit underwriting guidelines are outlined in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015, in the Loan Portfolio Composition discussion in the Asset Quality Section beginning on page 26 and continuing to page 32. FHN’s credit underwriting guidelines and loan product offerings as of September 30, 2016, are generally consistent with those reported and disclosed in the Company’s Form 10-K for the year ended December 31, 2015.

Acquired Loans

On September 16, 2016, FHN completed its acquisition of restaurant franchise loans from GE Capital. The acquisition included $537.4 million in unpaid principal balance of loans. Acquired loans were initially recorded at fair value which was estimated by discounting expected cash flows at the acquisition date. The expected cash flows include all contractually expected amounts and incorporate an estimate for future expected credit losses, pre-payment assumptions and yield requirement for a market participant, among other things. Because an expectation of credit losses is embedded in the fair value estimate, there is no carryover of allowance for loan losses. See Note 4 - Loans for additional information regarding the acquisition.

Certain loans acquired from GE Capital were designated as purchased credit-impaired (“PCI”) loans. PCI loans are loans that have exhibited deterioration of credit quality between origination and the time of acquisition and for which the timely collection of the interest and principal is no longer reasonably assured. FHN considered several factors when determining whether a loan met the definition of a PCI loan at the time of acquisition including accrual status, loan grade, delinquency trends, pre-acquisition charge-offs, as well as both originated versus refreshed credit scores and ratios when available.

On September 30, 2016, the unpaid principal balance and the carrying value of PCI loans (inclusive of the GE Capital loan purchase and two previous bank acquisitions) were $61.0 million and $56.1 million, respectively.

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The following is a description of each portfolio:

COMMERCIAL LOAN PORTFOLIOS

C&I

The C&I portfolio was $12.1 billion on September 30, 2016, and is comprised of loans used for general business purposes and primarily composed of relationship customers in Tennessee and other selected markets that are managed within the regional bank. Typical products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit.

The following table provides the composition of the C&I portfolio by industry as of September 30, 2016 and 2015. For purposes of this disclosure, industries are determined based on the North American Industry Classification System (“NAICS”) industry codes used by Federal statistical agencies in classifying business establishments for the collection, analysis, and publication of statistical data related to the U.S. business economy.

Table 8 - C&I Loan Portfolio by Industry

	September 30, 2016					September 30, 2015
(Dollars in thousands)	Amount		Percent			Amount		Percent
Industry:
Loans to mortgage companies	$	2,479,819		20	%	$	1,375,320		14	%
Finance & insurance		2,320,553		19			2,135,759		22
Accommodation & food service (a)		1,000,769		8			379,834		4
Wholesale trade		859,296		7			780,918		8
Health care & social assistance		824,704		7			743,505		8
Real estate rental & leasing (b)		773,055		6			636,516		7
Manufacturing		681,305		6			685,702		7
Public administration		562,670		5			590,098		6
Other (transportation, education, arts, entertainment, etc) (c)		2,616,127		22			2,282,643		24
Total C&I loan portfolio	$	12,118,298		100	%	$	9,610,295		100	%

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) Includes FHN’s franchise finance loans which increased approximately $535 million as a result of the GE Capital loan acquisition

(b) Leasing, rental of real estate, equipment, and goods.

(c) Industries in this category each comprise less than 5 percent for 2016.

Industry Concentrations

Loan concentrations are considered to exist for a financial institution when there are loans to numerous borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. 39 percent of FHN’s C&I portfolio (Finance and insurance plus Loans to mortgage companies) could be affected by items that uniquely impact the financial services industry. Except “Finance and Insurance” and “Loans to Mortgage Companies”, as discussed below, on September 30, 2016, FHN did not have any other concentrations of C&I loans in any single industry of 10 percent or more of total loans.

Finance and Insurance

The finance and insurance component represents 19 percent of the C&I portfolio and includes TRUPS (i.e., long-term unsecured loans to bank and insurance-related businesses), loans to bank holding companies, and asset-based lending to consumer finance companies. As of September 30, 2016, asset-based lending to consumer finance companies represents approximately $1.0 billion of the finance and insurance component.

TRUPS lending was originally extended as a form of “bridge” financing to participants in the pooled trust preferred securitization program offered primarily to smaller banking (generally less than $15 billion in total assets) and insurance institutions through FHN’s fixed income business. Origination of TRUPS lending ceased in early 2008. Individual TRUPS are re-graded at least quarterly as part of FHN’s commercial loan review process. Typically, the terms of these loans include a prepayment option after a 5 year initial term, have a scheduled 30 year balloon payoff, and include an option to defer interest for up to 20 consecutive quarters. As of September 30, 2016, one TRUP relationship was on interest deferral compared to two as of September 30, 2015.

As of September 30, 2016, the unpaid principal balance (“UPB”) of trust preferred loans totaled $333.4 million ($207.1 million of bank TRUPS and $126.3 million of insurance TRUPS) with the UPB of other bank-related loans totaling $229.4 million. Inclusive of a remaining lower of cost or market (“LOCOM”) valuation allowance on TRUPS of $25.5 million, total reserves (ALLL plus the LOCOM) for TRUPS and other bank-related loans were $26.6 million or 5 percent of outstanding UPB.

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Loans to Mortgage Companies

The balances of loans to mortgage companies were 20 percent of the C&I portfolio as of September 30, 2016, as compared to 14 percent of the C&I portfolio in 2015, and include balances related to both home purchase and refinance activity. This portfolio class, which generally fluctuates with mortgage rates and seasonal factors, includes commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Generally, lending to mortgage lenders increases when there is a decline in mortgage rates and decreases when rates rise.

C&I Asset Quality Trends

The C&I ALLL increased $15.4 million from September 30, 2015, to $86.9 million as of September 30, 2016. The net increase in reserves is largely driven by loan growth but was somewhat offset by the favorable impact of lower loss rates as net charge-offs remain at historical lows. The allowance as a percentage of period-end loans decreased to .72 percent as of September 30, 2016, from ..74 percent as of September 30, 2015. Net charge-offs were $1.3 million in third quarter 2016 compared to $6.4 million in third quarter 2015. Nonperforming C&I loans within the regional bank increased $9.4 million while non-strategic decreased $9.1 million for a net increase of $.3 million from September 30, 2015, to $29.9 million on September 30, 2016. The decrease in non-strategic nonperforming loans was primarily due to the fourth quarter 2015 sale of a TRUP loan on interest deferral. The nonperforming loan (“NPL”) ratio decreased 6 basis points from September 30, 2015, to .25 percent of C&I loans as of September 30, 2016. The 30+ delinquency ratio decreased 4 basis points from September 30, 2015, to .05 percent of C&I loans as of September 30, 2016.

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The following table shows C&I asset quality trends by segment.

Table 9 - C&I Asset Quality Trends by Segment

	September 30, 2016
(Dollars in thousands)	Regional Bank			Non- Strategic			Consolidated
Period-end loans	$	11,697,996		$	420,302		$	12,118,298
Nonperforming loans		25,772			4,172			29,944
Allowance for loan losses as of July 1, 2016		79,597			1,375			80,972
Charge-offs		(1,992	)		—			(1,992	)
Recoveries		711			14			725
Provision/(provision credit) for loan losses		7,151			10			7,161
Allowance for loan losses as of September 30, 2016		85,467			1,399			86,866
Troubled debt restructurings	$	32,983		$	—		$	32,983
30+ Delinq. % (a)		0.05	%		—	%		0.05	%
NPL %		0.22			0.99			0.25
Net charge-offs % (qtr. annualized)		0.05			NM			0.04
Allowance / loans %		0.73	%		0.33	%		0.72	%
Allowance / charge-offs		16.76	x		NM			17.23	x
	September 30, 2015
(Dollars in thousands)	Regional Bank			Non- Strategic			Consolidated
Period-end loans	$	9,178,072		$	432,223		$	9,610,295
Nonperforming loans		16,308			13,313			29,621
Allowance for loan losses as of July 1, 2015		73,408			5,342			78,750
Charge-offs		(8,632	)		—			(8,632	)
Recoveries		1,151			1,113			2,264
Provision/(provision credit) for loan losses		(294	)		(625	)		(919	)
Allowance for loan losses as of September 30, 2015		65,633			5,830			71,463
Troubled debt restructurings	$	18,873		$	—		$	18,873
30+ Delinq. % (a)		0.10	%		0.02	%		0.09	%
NPL %		0.18			3.08			0.31
Net charge-offs % (qtr. annualized)		0.33			NM			0.26
Allowance / loans %		0.72	%		1.35	%		0.74	%
Allowance / charge-offs		2.21	x		NM			2.83	x

NM - Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

Commercial Real Estate

The CRE portfolio was $2.1 billion on September 30, 2016. The CRE portfolio includes both financings for commercial construction and nonconstruction loans. This portfolio is segregated between the income-producing CRE class which contains loans, draws on lines and letters of credit to commercial real estate developers for the construction and mini-permanent financing of income-producing real estate, and the residential CRE class. Subcategories of income CRE consist of multi-family (31 percent), retail (24 percent), hospitality (14 percent), office (14 percent), industrial (11 percent), land/land development (2 percent), and other (4 percent).

The residential CRE class includes loans to residential builders and developers for the purpose of constructing single-family homes, condominiums, and town homes. Active residential CRE lending within the regional banking footprint has been minimal with nearly all new originations limited to tactical advances to facilitate workout strategies with existing clients and selected new transactions with “strategic” clients. FHN considers a “strategic” residential CRE borrower as a homebuilder within the regional banking footprint who remained profitable during the most recent down cycle.

94

CRE Asset Quality Trends

The CRE portfolio had continued stable performance in third quarter 2016 with nonperforming loans down $4.7 million from a year ago. The allowance increased $7.1 million from third quarter 2015 to $32.4 million in third quarter 2016. The increase in allowance is primarily driven by loan growth as balances increased $577.6 million from a year ago and consideration of the current economic environment. Allowance as a percentage of loans declined 13 basis points compared to third quarter 2015 to 1.57 percent as of September 30, 2016. FHN recognized a net recovery of $.6 million in third quarter 2016 compared to a net recovery of $.3 million in third quarter 2015. Nonperforming loans as a percentage of total CRE loans improved 37 basis points from third quarter 2015 to .17 percent as of September 30, 2016. Accruing delinquencies as a percentage of period-end loans improved 25 basis points from September 30, 2015, to .18 percent as of September 30, 2016. The following table shows commercial real estate asset quality trends by segment.

Table 10 - Commercial Real Estate Asset Quality Trends by Segment

	September 30, 2016
	Regional			Non-
(Dollars in thousands)	Bank			Strategic			Consolidated
Period-end loans	$	2,065,595		$	NM		$	2,065,595
Nonperforming loans		3,417			NM			3,417
Allowance for loan losses as of July 1, 2016		30,264			NM			30,264
Charge-offs		(49	)		NM			(49	)
Recoveries		651			NM			651
Provision/(provision credit) for loan losses		1,554			NM			1,554
Allowance for loan losses as of September 30, 2016		32,420			NM			32,420
Troubled debt restructurings	$	3,302		$	—		$	3,302
30+ Delinq. % (a)		0.18	%		NM			0.18	%
NPL %		0.17			NM			0.17
Net charge-offs % (qtr. annualized)		NM			NM			NM
Allowance / loans %		1.57	%		NM			1.57	%
Allowance / charge-offs		NM			NM			NM
	September 30, 2015
	Regional			Non-
(Dollars in thousands)	Bank			Strategic			Consolidated
Period-end loans	$	1,487,846		$	198		$	1,488,044
Nonperforming loans		8,103			—			8,103
Allowance for loan losses as of July 1, 2015		21,465			27			21,492
Charge-offs		(533	)		—			(533	)
Recoveries		638			230			868
Provision/(provision credit) for loan losses		3,767			(246	)		3,521
Allowance for loan losses as of September 30, 2015		25,337			11			25,348
Troubled debt restructurings	$	10,287		$	—		$	10,287
30+ Delinq. % (a)		0.43	%		—	%		0.43	%
NPL %		0.54			—			0.54
Net charge-offs % (qtr. annualized)		NM			NM			NM
Allowance / loans %		1.70	%		5.86	%		1.70	%
Allowance / charge-offs		NM			NM			NM

NM - Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

95

CONSUMER LOAN PORTFOLIOS

Consumer Real Estate

The consumer real estate portfolio was $4.6 billion on September 30, 2016, and is primarily composed of home equity lines and installment loans including restricted balances (loans consolidated under ASC 810). The largest geographical concentrations of balances as of September 30, 2016, are in Tennessee (68 percent) and California (6 percent) with no other state representing more than 3 percent of the portfolio. As of September 30, 2016, approximately 67 percent of the consumer real estate portfolio was in a first lien position. At origination, weighted average FICO score of this portfolio was 749 and refreshed FICO scores averaged 746 as of September 30, 2016, as compared to 747 and 742, respectively, as of September 30, 2015. Generally, performance of this portfolio is affected by life events that affect borrowers’ finances, the level of unemployment, and home prices.

Home equity lines of credit (“HELOCs”) comprise $1.8 billion of the consumer real estate portfolio as of September 30, 2016. FHN’s HELOCs typically have a 5 or 10 year draw period followed by a 10 or 20 year repayment period, respectively. During the draw period, a borrower is able to draw on the line and is only required to make interest payments. The line is automatically frozen if a borrower becomes 45 days or more past due on payments. Once the draw period has concluded, the line is closed and the borrower is required to make both principal and interest payments monthly until the loan matures. The principal payment generally is fully amortizing, but payment amounts will adjust when variable rates reset to reflect changes in the prime rate.

As of September 30, 2016, approximately 64 percent of FHN’s HELOCs are in the draw period, compared to 68 percent as of September 30, 2015. Based on when draw periods are scheduled to end per the line agreement, it is expected that $614.2 million, or 54 percent of HELOCs currently in the draw period, will have entered the repayment period during the next 60 months. Delinquencies and charge-off rates for HELOCs that have entered the repayment period are initially higher than HELOCs still in the draw period because of the increased minimum payment requirement; however, after some seasoning, performance of these loans begins to stabilize. The home equity lines of the consumer real estate portfolio are being monitored closely for those nearing the end of the draw period and borrowers are being contacted proactively early in the process. The following table shows the HELOCs currently in the draw period and expected timing of conversion to the repayment period.

Table 11 - HELOC Draw To Repayment Schedule

	September 30, 2016					September 30, 2015
(Dollars in thousands)	Repayment Amount		Percent			Repayment Amount		Percent
Months remaining in draw period:
0-12	$	235,264		21	%	$	252,574		17	%
13-24		152,958		13			289,118		20
25-36		87,830		8			183,876		13
37-48		69,105		6			106,711		7
49-60		69,026		6			83,939		6
>60		519,849		46			545,910		37
Total	$	1,134,032		100	%	$	1,462,128		100	%

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Consumer Real Estate Asset Quality Trends

Overall, performance of the consumer real estate portfolio improved in third quarter 2016 when compared with third quarter 2015. The ALLL decreased $29.2 million from third quarter 2015 to $53.2 million as of September 30, 2016, with 75 percent of the decline attributable to the non-strategic segment. The allowance as a percentage of loans was 1.16 percent as of September 30, 2016, compared to 1.71 percent as of September 30, 2015. The 55 basis point decline in the allowance as a percentage of loans from third quarter 2015 to third quarter 2016 is the result of continued run-off of the balances within the non-strategic portfolio, sustained levels of low net charge-offs, strong performance, and continued improvement/stabilization of property values. The balance of nonperforming loans was $89.4 million and $111.7 million as of September 30, 2016 and 2015, respectively. The decrease was primarily the result of performing TDRs returning to accrual status, a decrease in second-lien loans behind delinquent first-lien loans, and run-off in the non-strategic segment of the portfolio. Loans delinquent 30 or more days and still accruing declined from $44.3 million as of September 30, 2015, to $39.4 million as of September 30, 2016. Third quarter 2016 realized a net recovery of $1.2 million compared to a net charge-off of $2.2 million in third quarter 2015. The ratios of 30+ delinquency and NPLs as a percentage of loans within the nonstrategic segment have increased compared to third quarter 2015 as total loans are declining at a faster rate than delinquencies and nonperforming loans. The following table shows consumer real estate asset quality trends by segment.

Table 12 - Consumer Real Estate Asset Quality Trends by Segment

	September 30, 2016
	Regional			Non-
(Dollars in thousands)	Bank			Strategic			Consolidated
Period-end loans	$	3,608,340		$	970,031		$	4,578,371
Nonperforming loans		20,680			68,757			89,437
Allowance for loan losses as of July 1, 2016		24,278			34,803			59,081
Charge-offs		(1,074	)		(3,285	)		(4,359	)
Recoveries		985			4,606			5,591
Provision/(provision credit) for loan losses		(3,965	)		(3,113	)		(7,078	)
Allowance for loan losses as of September 30, 2016		20,224			33,011			53,235
Troubled debt restructurings	$	49,444		$	109,465		$	158,909
30+ Delinq. % (a)		0.46	%		2.34	%		0.86	%
NPL %		0.57			7.09			1.95
Net charge-offs % (qtr. annualized)		0.01			NM			NM
Allowance / loans %		0.56	%		3.40	%		1.16	%
Allowance / charge-offs		57.14	x		NM			NM
	September 30, 2015
	Regional			Non-
(Dollars in thousands)	Bank			Strategic			Consolidated
Period-end loans	$	3,469,209		$	1,344,727		$	4,813,936
Nonperforming loans		26,092			85,576			111,668
Allowance for loan losses as of July 1, 2015		25,052			60,405			85,457
Charge-offs		(2,127	)		(5,867	)		(7,994	)
Recoveries		1,215			4,570			5,785
Provision/(provision credit) for loan losses		3,388			(4,164	)		(776	)
Allowance for loan losses as of September 30, 2015		27,528			54,944			82,472
Troubled debt restructurings	$	53,597		$	116,471		$	170,068
30+ Delinq. % (a)		0.48	%		2.07	%		0.92	%
NPL %		0.75			6.36			2.32
Net charge-offs % (qtr. annualized)		0.11			0.37			0.18
Allowance / loans %		0.79	%		4.09	%		1.71	%
Allowance / charge-offs		7.62	x		10.67	x		9.41	x

NM - Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

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Permanent Mortgage

The permanent mortgage portfolio was $.4 billion on September 30, 2016. This portfolio is primarily composed of jumbo mortgages and one-time-close (“OTC”) completed construction loans that were originated through legacy businesses. The corporate segment includes loans that were previously included in off-balance sheet proprietary securitization trusts. These loans were brought back into the loan portfolios at fair value through the execution of cleanup calls due to the relatively small balances left in the securitization and should continue to run-off. Approximately 24 percent of loan balances as of September 30, 2016, are in California, but the remainder of the portfolio is somewhat geographically diverse. Run-off contributed to a majority of the $27.8 million net decrease in permanent mortgage period-end balances from third quarter 2015 to third quarter 2016.

The ALLL decreased $3.5 million as of September 30, 2016, from $20.1 million as of September 30, 2015. TDR reserves (which are estimates of losses for the expected life of the loan) comprise 88 percent of the ALLL for the permanent mortgage portfolio as of September 30, 2016. Accruing delinquencies as a percentage of total loans increased from 2.01 percent in third quarter 2015 to 2.46 percent in third quarter 2016. Nonperforming loans declined $4.7 million to $29.1 million as of September 30, 2016. Annualized net charge-offs as a percentage of average loans were .12 percent in third quarter 2016 compared to .67 percent in third quarter 2015. The following table shows permanent mortgage asset quality trends by segment.

Table 13 - Permanent Mortgage Asset Quality Trends by Segment

	September 30, 2016
	Regional						Non-
(Dollars in thousands)	Bank			Corporate (a)			Strategic			Consolidated
Period-end loans	$	67,367		$	78,673		$	290,060		$	436,100
Nonperforming loans		398			1,211			27,495			29,104
Allowance for loan losses as of July 1, 2016		579			NM			17,021			17,600
Charge-offs		—			NM			(373	)		(373	)
Recoveries		—			NM			239			239
Provision/(provision credit) for loan losses		461			NM			(1,338	)		(877	)
Allowance for loan losses as of September 30, 2016		1,040			NM			15,549			16,589
Troubled debt restructurings	$	997		$	3,834		$	89,240		$	94,071
30+ Delinq. % (b)		0.64	%		4.37	%		2.36	%		2.46	%
NPL %		0.59			1.54			9.48			6.67
Net charge-offs % (qtr. annualized)		—			NM			0.18			0.12
Allowance / loans %		1.54	%		NM			5.36	%		3.80	%
Allowance / charge-offs		NM			NM			29.16	x		31.11	x
	September 30, 2015
	Regional						Non-
(Dollars in thousands)	Bank			Corporate (a)			Strategic			Consolidated
Period-end loans	$	8,936		$	106,807		$	348,150		$	463,893
Nonperforming loans		483			3,043			30,319			33,845
Allowance for loan losses as of July 1, 2015		83			NM			22,294			22,377
Charge-offs		(58	)		NM			(980	)		(1,038	)
Recoveries		58			NM			171			229
Provision/(provision credit) for loan losses		(9	)		NM			(1,483	)		(1,492	)
Allowance for loan losses as of September 30, 2015		74			NM			20,002			20,076
Troubled debt restructurings	$	1,137		$	4,037		$	99,880		$	105,054
30+ Delinq. % (b)		7.62	%		2.95	%		1.58	%		2.01	%
NPL %		5.40			2.85			8.71			7.30
Net charge-offs % (qtr. annualized)		—			NM			0.90			0.67
Allowance / loans %		0.83	%		NM			5.75	%		4.33	%
Allowance / charge-offs		NM			NM			6.23	x		6.25	x

NM - Not meaningful

Loans are expressed net of unearned income.

(a) The valuation taken upon exercise of clean-up calls included expected losses.

(b) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

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Credit Card and Other

The credit card and other portfolio was $.4 billion as of September 30, 2016, and primarily includes credit card receivables, other consumer-related credits, and automobile loans. The allowance increased to $12.4 million as of September 30, 2016, from $11.5 million as of September 30, 2015. In third quarter 2016, FHN recognized $2.7 million of net charge-offs in the credit card and other portfolio, compared to $2.5 million in third quarter 2015. Annualized net charge-offs as a percentage of average loans increased 16 basis points from third quarter 2015 to 2.95 percent in third quarter 2016. Loans 30 days or more delinquent and accruing as a percentage of loans decreased 15 basis points from third quarter 2015 to 1.04 percent in third quarter 2016. The following table shows credit card and other asset quality trends by segment.

Table 14 - Credit Card and Other Asset Quality Trends by Segment

	September 30, 2016
	Regional			Non-
(Dollars in thousands)	Bank			Strategic			Consolidated
Period-end loans	$	349,340		$	8,083		$	357,423
Nonperforming loans		—			148			148
Allowance for loan losses as of July 1, 2016		11,633			257			11,890
Charge-offs		(3,550	)		(39	)		(3,589	)
Recoveries		835			71			906
Provision/(provision credit) for loan losses		3,328			(88	)		3,240
Allowance for loan losses as of September 30, 2016		12,246			201			12,447
Troubled debt restructurings	$	294		$	46		$	340
30+ Delinq. % (a)		1.03	%		1.62	%		1.04	%
NPL %		—			1.83			0.04
Net charge-offs % (qtr. annualized)		3.06			NM			2.95
Allowance / loans %		3.51	%		2.50	%		3.48	%
Allowance / charge-offs		1.13	x		NM			1.17	x
	September 30, 2015
	Regional			Non-
(Dollars in thousands)	Bank			Strategic			Consolidated
Period-end loans	$	338,839		$	10,485		$	349,324
Nonperforming loans		—			743			743
Allowance for loan losses as of July 1, 2015		12,735			540			13,275
Charge-offs		(3,242	)		(370	)		(3,612	)
Recoveries		1,033			93			1,126
Provision/(provision credit) for loan losses		(156	)		822			666
Allowance for loan losses as of September 30, 2015		10,370			1,085			11,455
Troubled debt restructurings	$	305		$	75		$	380
30+ Delinq. % (a)		1.17	%		1.77	%		1.19	%
NPL %		—			7.09			0.21
Net charge-offs % (qtr. annualized)		2.56			10.22			2.79
Allowance / loans %		3.06	%		10.34	%		3.28	%
Allowance / charge-offs		1.18	x		0.98	x		1.16	x

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

99

The following table provides additional asset quality data by loan portfolio:

Table 15 - Asset Quality by Portfolio

	September 30
	2016			2015
Key Portfolio Details
C&I
Period-end loans ($ millions)	$	12,118		$	9,610
30+ Delinq. % (a)		0.05	%		0.09	%
NPL %		0.25			0.31
Charge-offs % (qtr. annualized)		0.04			0.26
Allowance / loans %		0.72	%		0.74	%
Allowance / charge-offs		17.23	x		2.83	x
Commercial Real Estate
Period-end loans ($ millions)	$	2,066		$	1,488
30+ Delinq. % (a)		0.18	%		0.43	%
NPL %		0.17			0.54
Charge-offs % (qtr. annualized)		NM			NM
Allowance / loans %		1.57	%		1.70	%
Allowance / charge-offs		NM			NM
Consumer Real Estate
Period-end loans ($ millions)	$	4,578		$	4,814
30+ Delinq. % (a)		0.86	%		0.92	%
NPL %		1.95			2.32
Charge-offs % (qtr. annualized)		NM			0.18
Allowance / loans %		1.16	%		1.71	%
Allowance / charge-offs		NM			9.41	x
Permanent Mortgage
Period-end loans ($ millions)	$	436		$	464
30+ Delinq. % (a)		2.46	%		2.01	%
NPL %		6.67			7.30
Charge-offs % (qtr. annualized)		0.12			0.67
Allowance / loans %		3.80	%		4.33	%
Allowance / charge-offs		31.11	x		6.25	x
Credit Card and Other
Period-end loans ($ millions)	$	358		$	349
30+ Delinq. % (a)		1.04	%		1.19	%
NPL %		0.04			0.21
Charge-offs % (qtr. annualized)		2.95			2.79
Allowance / loans %		3.48	%		3.28	%
Allowance / charge-offs		1.17	x		1.16	x

NM – Not meaningful

Loans are expressed net of unearned income.

(a) 30+ Delinquency % includes all accounts delinquent more than one month and still accruing interest.

Allowance for Loan Losses

Management’s policy is to maintain the ALLL at a level sufficient to absorb estimated probable incurred losses in the loan portfolio. The total allowance for loan losses decreased 4 percent from third quarter 2015 to $201.6 million on September 30, 2016. The ALLL as of September 30, 2016, reflects loan growth within the regional bank, strong asset quality with the consumer real estate portfolio continuing to stabilize, declining non-strategic balances, and the moderation of the pace of improvement from a year ago. The ratio of allowance for loan losses to total loans, net of unearned income, decreased to 1.03 percent on September 30, 2016, from 1.26 percent on September 30, 2015.

The provision for loan losses is the charge to earnings necessary to maintain the ALLL at a sufficient level reflecting management’s estimate of probable incurred losses in the loan portfolio. The provision for loan losses increased to $4.0 million in third quarter 2016 from $1.0 million in third quarter 2015.

FHN expects asset quality trends to remain relatively stable for the near term if the slow growth of the economy continues. The C&I portfolio is expected to continue to show stable trends but short-term variability (both positive and negative) is possible. The CRE

100

portfolio metrics should be relatively consistent as FHN expects stable property values over the near term; however, oversupply of any CRE product type, changes in the lending environment, or economic uncertainty could result in decreased property values. The remaining non-strategic consumer real estate and permanent mortgage portfolios should continue to steadily wind down. Asset quality metrics within non-strategic may become skewed as the portfolio continues to shrink. Continued stabilization in performance of the consumer real estate portfolio assumes an ongoing economic recovery as consumer delinquency and loss rates are correlated with unemployment trends and strength of the housing market.

Consolidated Net Charge-offs

Net charge-offs decreased $9.3 million from third quarter 2015 to $2.3 million in third quarter 2016. The ALLL was 22.51 times annualized net charge-offs for third quarter 2016 compared with 4.61 times annualized net charge-offs for third quarter 2015. The annualized net charge-offs to average loans ratio declined by 23 basis points to .05 percent. Net charge-off levels remain at historical lows.

Commercial net charge-offs were $.7 million in third quarter 2016 compared to $6.0 million in third quarter 2015. The decline in commercial net charge-offs was largely driven by the C&I portfolio within the regional bank as third quarter 2015 included a charge-off resulting from borrower fraud associated with one large regional bank C&I credit. Consolidated net charge-offs in the consumer portfolios declined $3.9 million from third quarter 2015 to $1.6 million in third quarter 2016. The decline in consumer net charge-offs was largely driven by the consumer real estate portfolio within non-strategic as gross charge-offs have been lower but also due to default servicing and recovery efforts.

Nonperforming Assets

Nonperforming loans are loans placed on nonaccrual status if it becomes probable that full collection of principal and interest will not be collected in accordance with contractual terms, impairment has been recognized as a partial charge-off of principal balance, or on a case-by-case basis, if FHN continues to receive payments but there are other borrower-specific issues. Included in nonaccruals are loans in which FHN continues to receive payments, including residential real estate loans where the borrower has been discharged of personal obligation through bankruptcy and second liens, regardless of delinquency status, behind first liens that are 90 or more days past due or are TDRs. These, along with foreclosed real estate, excluding foreclosed real estate from government insured mortgages, represent nonperforming assets (“NPAs”).

Total nonperforming assets (including NPLs HFS) decreased to $173.5 million on September 30, 2016, from $217.2 million on September 30, 2015. The nonperforming assets ratio (nonperforming assets excluding NPLs HFS to total period-end loans plus foreclosed real estate and other assets) decreased to .85 percent in third quarter 2016 from 1.25 percent in third quarter 2015 due to a 47 percent decrease in foreclosed real estate (excluding foreclosed real estate from government insured mortgages) and a 17 percent decline in portfolio nonperforming loans from third quarter 2015 to third quarter 2016. Portfolio nonperforming loans declined $31.9 million from third quarter 2015 to $152.0 million on September 30, 2016. The decline in nonperforming loans was primarily driven by a decrease in consumer real estate nonperforming loans within the non-strategic segment as well as a decline in commercial real estate loans within the regional bank.

Consolidated nonperforming consumer real estate loans decreased $22.2 million in 2016 from $111.7 million in 2015. This decrease was largely driven by performing troubled debt restructurings (“TDRs”) returning to accrual status combined with a decline in second-lien loans behind delinquent first-lien loans. C&I NPLs within the regional bank increased $9.4 million while nonstrategic decreased $9.1 million for a net increase of $.3 million in third quarter 2016. The decrease in nonstrategic C&I NPLs was primarily due to the fourth quarter 2015 sale of a TRUP loan on interest deferral. Commercial real estate NPLs decreased $4.7 million to $3.4 million in 2016 within the regional bank driven by payoffs.

The ratio of the ALLL to NPLs in the loan portfolio was 1.33 times in 2016 compared to 1.15 times in 2015, driven by lower nonperforming loans. Certain nonperforming loans in both the commercial and consumer portfolios are deemed collateral-dependent and are charged down to an estimate of collateral value less costs to sell. Because loss content has been recognized through a partial charge-off, typically reserves are not recorded.

Table 16 provides an activity rollforward of foreclosed real estate balances for September 30, 2016 and 2015. The balance of foreclosed real estate, exclusive of inventory from government insured mortgages, decreased to $13.7 million as of September 30, 2016, from $25.9 million as of September 30, 2015, as FHN has executed sales of existing foreclosed assets and continued efforts to avoid foreclosures by restructuring loans and working with borrowers. Additionally, property values have stabilized which also affect the balance of foreclosed real estate. See the discussion of Foreclosure Practices in the Market Uncertainties and Prospective Trends section of MD&A for information regarding the impact on FHN.

101

Table 16 - Rollforward of Foreclosed Real Estate

	Three Months Ended September 30						Nine Months Ended September 30
(Dollars in thousands)	2016			2015			2016			2015
Beginning balance (a)	$	14,150		$	29,109		$	24,977		$	30,430
Valuation adjustments		(711	)		(706	)		(1,561	)		(2,366	)
New foreclosed property		3,745			1,479			7,291			9,772
Disposals:
Single transactions		(3,506	)		(4,010	)		(17,029	)		(11,964	)
Ending balance, September 30 (a)	$	13,678		$	25,872		$	13,678		$	25,872

(a) Excludes foreclosed real estate and receivables related to government insured mortgages of $6.4 million and $10.7 million as of September 30, 2016 and 2015, respectively.

The following table provides consolidated asset quality information for the three months ended September 30, 2016 and 2015:

Table 17 - Asset Quality Information

	Three Months Ended September 30
(Dollars in thousands)	2016			2015
Allowance for loan losses:
Beginning balance on July 1	$	199,807		$	221,351
Provision for loan losses		4,000			1,000
Charge-offs		(10,362	)		(21,809	)
Recoveries		8,112			10,272
Ending balance on September 30	$	201,557		$	210,814
Reserve for remaining unfunded commitments		4,802			6,231
Total allowance for loan losses and reserve for unfunded commitments	$	206,359		$	217,045
	As of September 30
	2016			2015
Nonperforming Assets by Segment
Regional Banking:
Nonperforming loans (a)	$	50,267		$	50,986
Foreclosed real estate (b)		5,811			17,042
Total Regional Banking		56,078			68,028
Non-Strategic:
Nonperforming loans (a)		100,572			129,951
Nonperforming loans held-for-sale after fair value adjustment (a)		7,791			7,347
Foreclosed real estate (b)		7,867			8,830
Total Non-Strategic		116,230			146,128
Corporate:
Nonperforming loans (a)		1,211			3,043
Total Corporate		1,211			3,043
Total nonperforming assets (a) (b)	$	173,519		$	217,199

(a) Excludes loans that are 90 or more days past due and still accruing interest.

(b) Excludes foreclosed real estate from government-insured mortgages.

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Table 17 - Asset Quality Information (Continued)

	As of September 30
	2016			2015
Loans and commitments:
Total period-end loans, net of unearned income	$	19,555,787		$	16,725,492
Potential problem assets (a)		255,370			194,122
Loans 30 to 89 days past due		40,548			52,216
Loans 30 to 89 days past due - guaranteed portion (b)		93			—
Loans 90 days past due (c)		22,880			20,893
Loans 90 days past due - guaranteed portion (b) (c)		30			75
Loans held-for-sale 30 to 89 days past due		5,555			7,094
Loans held-for-sale 30 to 89 days past due - guaranteed portion (b)		5,348			6,482
Loans held-for-sale 90 days past due (c)		13,615			17,564
Loans held-for-sale 90 days past due - guaranteed portion (b) (c)		13,615			16,782
Remaining unfunded commitments		8,012,345			7,962,432
Average loans, net of unearned income	$	18,679,350		$	16,632,994
Allowance and net charge-off ratios:
Allowance to total loans		1.03	%		1.26	%
Allowance to nonperforming loans in the loan portfolio		1.33	x		1.15	x
Allowance to annualized net charge-offs		22.51	x		4.61	x
Nonperforming assets to loans and foreclosed real estate (d)		0.85	%		1.25	%
Nonperforming loans in the loan portfolio to total loans, net of unearned income		0.78	%		1.10	%
Total annualized net charge-offs to average loans (e)		0.05	%		0.28	%

(a) Includes past due loans.

(b) Guaranteed loans include FHA, VA, and GNMA loans repurchased through the GNMA buyout program.

(c) Amounts are not included in nonperforming/nonaccrual loans.

(d) Ratio is non-performing assets related to the loan portfolio to total loans plus foreclosed real estate and other assets.

(e) Net charge-off ratio is annualized net charge-offs divided by quarterly average loans, net of unearned income.

Past Due Loans and Potential Problem Assets

Past due loans are loans contractually past due as to interest or principal payments, but which have not yet been put on nonaccrual status. Loans in the portfolio that are 90 days or more past due and still accruing were $22.9 million on September 30, 2016, compared to $20.9 million on September 30, 2015. The increase was driven primarily by the permanent mortgage and commercial real estate portfolios. Loans 30 to 89 days past due decreased to $40.5 million on September 30, 2016, from $52.2 million on September 30, 2015. The decrease was largely driven by the commercial and consumer real estate portfolios.

Potential problem assets represent those assets where information about possible credit problems of borrowers has caused management to have serious doubts about the borrower’s ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by the OCC for loans classified as substandard. Potential problem assets in the loan portfolio, which includes loans past due 90 days or more and still accruing, were $255.4 million on September 30, 2016, $234.3 million on June 30, 2016, and $194.1 million on September 30, 2015. The increase in potential problem assets from second quarter 2016 to third quarter 2016 was due to an increase in classified commercial loans as a result of the third quarter 2016 loan acquisition combined with net downgrades during the quarter. The current expectation of losses from potential problem assets has been included in management’s analysis for assessing the adequacy of the allowance for loan losses.

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Troubled Debt Restructuring and Loan Modifications

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when appropriate to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, FHN identifies and reports that loan as a Troubled Debt Restructuring (“TDR”). See Note 4 – Loans for further discussion regarding TDRs and loan modifications.

On September 30, 2016 and 2015, FHN had $289.6 million and $304.7 million portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $48.7 million and $51.2 million, or 17 percent of TDR balances, as of September 30, 2016 and 2015, respectively. Additionally, FHN had $71.2 million and $72.6 million of HFS loans classified as TDRs as of September 30, 2016 and 2015, respectively. Total held-to-maturity TDRs decreased by $15.1 million with the majority of the decline attributable to consumer real estate and permanent mortgage loans partially offset by an increase in C&I. Generally, the volume of new TDRs, particularly within the consumer real estate and permanent mortgage portfolios, has substantially declined.

The following table provides a summary of TDRs for the periods ended September 30, 2016 and 2015:

Table 18 - Troubled Debt Restructurings

(Dollars in thousands)	As of September 30, 2016		As of September 30, 2015
Held-to-maturity:
Permanent mortgage:
Current	$	74,066	$	80,028
Delinquent		2,211		4,379
Non-accrual (a)		17,794		20,647
Total permanent mortgage		94,071		105,054
Consumer real estate:
Current		106,147		105,989
Delinquent		3,320		4,164
Non-accrual (b)		49,442		59,915
Total consumer real estate		158,909		170,068
Credit card and other:
Current		312		368
Delinquent		28		12
Non-accrual		—		—
Total credit card and other		340		380
Commercial loans:
Current		25,733		20,471
Delinquent		—		182
Non-accrual		10,552		8,507
Total commercial loans		36,285		29,160
Total held-to-maturity	$	289,605	$	304,662
Held-for-sale:
Current	$	50,704	$	52,270
Delinquent		14,303		16,775
Non-accrual		6,218		3,592
Total held-for-sale		71,225		72,637
Total troubled debt restructurings	$	360,830	$	377,299

(a) Balances as of September 30, 2016 and 2015, include $4.3 million and $6.0 million, respectively, of discharged bankruptcies.

(b) Balances as of September 30, 2016 and 2015, each include $15.4 million of discharged bankruptcies.

RISK MANAGEMENT

Except as discussed below, there have been no significant changes to FHN’s risk management practices as described under “Risk Management” beginning on page 48 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

MARKET RISK MANAGEMENT

There have been no significant changes to FHN’s market risk management practices as described under “Market Risk Management” beginning on page 49 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

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Value-at-Risk (“VaR”) and Stress Testing

VaR is a statistical risk measure used to estimate the potential loss in value from adverse market movements over an assumed fixed holding period within a stated confidence level. FHN employs a model to compute daily VaR measures for its trading securities inventory. FHN computes VaR using historical simulation with a 1-year lookback period at a 99 percent confidence level and 1-day and 10-day time horizons. Additionally, FHN computes a Stressed VaR (“SVaR”) measure. The SVaR computation uses the same model but with model inputs reflecting historical data from a continuous 12-month period that reflects a period of significant financial stress appropriate for our trading securities portfolio.

A summary of FHN’s VaR and SVaR measures for 1-day and 10-day time horizons is as follows:

Table 19 - VaR and SVaR Measures

	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016						As of September 30, 2016
(Dollars in thousands)	Mean		High		Low		Mean		High		Low
1-day
VaR	$	814	$	1,040	$	606	$	769	$	1,411	$	393	$	880
SVaR		3,823		5,641		2,253		3,607		5,789		1,748		4,017
10-day
VaR		1,917		3,167		1,170		1,848		4,058		751		2,998
SVaR		12,439		18,221		7,105		11,703		18,221		3,263		12,055
	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015						As of September 30, 2015
(Dollars in thousands)	Mean		High		Low		Mean		High		Low
1-day
VaR	$	605	$	963	$	418	$	648	$	1,050	$	388	$	750
SVaR		2,515		3,926		1,647		3,086		5,356		1,647		2,720
10-day
VaR		1,636		3,171		742		1,826		3,452		742		2,077
SVaR		9,360		13,642		5,039		9,560		15,538		4,094		10,039
							Year Ended December 31, 2015						As of December 31, 2015
(Dollars in thousands)							Mean		High		Low
1-day
VaR							$	664	$	1,174	$	384	$	498
SVaR								3,184		5,727		1,628		2,263
10-day
VaR								1,788		3,452		742		990
SVaR								10,122		16,677		4,094		4,645

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FHN’s overall VaR measure includes both interest rate risk and credit spread risk. Separate measures of these component risks are as follows:

Table 20 - Schedule of Risks Included in VaR

	As of September 30 , 2016				As of September 30, 2015				As of December 31, 2015
(Dollars in Thousands)	1-day		10-day		1-day		10-day		1-day		10-day
Interest rate risk	$	683	$	1,436	$	1,069	$	3,406	$	451	$	553
Credit spread risk		785		2,710		762		1,483		443		841

CAPITAL MANAGEMENT AND ADEQUACY

There have been no significant changes to FHN’s capital management practices as described under “Capital Management and Adequacy” on page 51 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

OPERATIONAL RISK MANAGEMENT

There have been no significant changes to FHN’s operational risk management practices as described under “Operational Risk Management” on page 51 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

COMPLIANCE RISK MANAGEMENT

There have been no significant changes to FHN’s compliance risk management practices as described under “Compliance Risk Management” on page 51 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

CREDIT RISK MANAGEMENT

There have been no significant changes to FHN’s credit risk management practices as described under “Credit Risk Management” beginning on page 51 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

INTEREST RATE RISK MANAGEMENT

Except as disclosed below, there have been no significant changes to FHN’s interest rate risk management practices as described under “Interest Rate Risk Management” beginning on page 52 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

Net Interest Income Simulation Analysis

The information provided in this section, including the discussion regarding the outcomes of simulation analysis and rate shock analysis, is forward-looking. Actual results, if the assumed scenarios were to occur, could differ because of interest rate movements, the ability of management to execute its business plans, and other factors, including those presented in the Forward-Looking Statements section of this MD&A.

Management uses interest rate exposure models to formulate strategies to improve balance sheet positioning, earnings, or both, within FHN’s interest rate risk, liquidity, and capital guidelines. FHN uses simulation analysis as its primary tool to evaluate interest rate risk exposure. This type of analysis computes net interest income at risk under a variety of market interest rate scenarios to dynamically identify interest rate risk exposures exclusive of the potential impact on fee income. This risk management simulation, which considers forecasted balance sheet changes, prepayment speeds, deposit mix, pricing impacts, and other changes in the net interest spread, provides an estimate of the annual net interest income at risk for given changes in interest rates. The results help FHN develop strategies for managing exposure to interest rate risk. Like any risk management technique creating simulated outcomes for a range of given scenarios, interest rate simulation modeling is based on a number of assumptions and judgments. In this case, the assumptions relate primarily to loan and deposit growth, asset and liability prepayments, interest rates, and on- and off-balance sheet hedging strategies. Management believes the assumptions used and scenarios selected in its simulations are reasonable. Nevertheless, simulation modeling provides only a sophisticated estimate, not a precise calculation, of exposure to any given changes in interest rates.

The simulation models used to analyze net interest income create various at-risk scenarios looking at assumed increases and/or decreases in interest rates from instantaneous and staggered movements over a certain time period. In addition, the risk of changes in the yield curve is estimated by flattening and steepening the yield curve to simulate net interest income exposure. Management reviews these different scenarios to determine alternative strategies and executes based on that evaluation. The models are regularly updated to incorporate management action. Any scenarios that indicate a change in net interest income of 3 percent or more from a base net interest income are presented to the Board quarterly.

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The scenarios performed attempt to capture risk to net interest income from rising rates and changes in the shape of the yield curve assuming a static balance sheet. Based on the rate sensitivity position on September 30, 2016, net interest income exposure over the next 12 months to a rate shock of plus 25 basis points, 50 basis points, 100 basis points, and 200 basis points is estimated to be a favorable variance of 1.3 percent, 2.6 percent, 4.8 percent, and 8.7 percent, respectively of base net interest income. A steepening yield curve scenario where long-term rates increase by 50 basis points and short-term rates are static, results in a favorable variance in net interest income of 1.5 percent of base net interest income. A flattening yield curve scenario where long-term rates decrease by 50 basis points and short-term rates are static, results in an unfavorable variance in net interest income of 2.0 percent of base net interest income. A rate shock of minus 25 basis points results in an unfavorable variance in net interest income of 2.1 percent of base net interest income. These hypothetical scenarios are used to create one estimate of risk, and do not necessarily represent management’s current view of future interest rates or market developments.

While the continuing low interest rate environment is not expected to have a significant impact on the capital position of FHN, the ability to expand net interest margin in this environment, without assuming additional credit risk, continues to be a challenge for FHN. As long as the historically low interest rate environment persists, net interest margin will typically decline as yields on fixed rate loans and investment securities decrease due to the combination of asset prepayments and lower reinvestment rates. With core deposit rates near zero, there is little opportunity to offset the yield declines in fixed rate assets with corresponding declines in deposit rates.

LIQUIDITY MANAGEMENT

ALCO also focuses on liquidity management: the funding of assets with liabilities of appropriate duration, while mitigating the risk of unexpected cash needs. ALCO and the Board of Directors have adopted a Liquidity Policy to direct management on the Company’s liquidity risk. The objective of the Liquidity Policy is to ensure that FHN meets its cash and collateral obligations promptly, in a cost-effective manner and with the highest degree of reliability. The maintenance of adequate levels of asset and liability liquidity should provide FHN with the ability to meet both expected and unexpected cash flows and collateral needs. Key liquidity ratios, asset liquidity levels and the amount available from funding sources are reported to ALCO on a regular basis. FHN’s Liquidity Policy establishes liquidity limits that are deemed appropriate for its risk profile.

In accordance with the Liquidity Policy, ALCO manages FHN’s exposure to liquidity risk through a dynamic, real time forecasting methodology. Base liquidity forecasts are reviewed by ALCO and are updated as financial conditions dictate. In addition to the baseline liquidity reports, robust stress testing of assumptions and funds availability are periodically reviewed. FHN maintains a contingency funding plan that may be executed, should unexpected difficulties arise in accessing funding that affects FHN, the industry as a whole, or both. Subject to market conditions and compliance with applicable regulatory requirements from time to time, funds are available from a number of sources including the available-for-sale securities portfolio, dealer and commercial customer repurchase agreements, access to the overnight and term Federal Funds markets, incremental borrowing capacity at the FHLB of $2.3 billion as of September 30, 2016, brokered deposits, loan sales, syndications, and access to the Federal Reserve Banks.

Core deposits are a significant source of funding and have historically been a stable source of liquidity for banks. Generally, core deposits represent funding from a financial institutions’ customer base which provide inexpensive, predictable pricing. The Federal Deposit Insurance Corporation insures these deposits to the extent authorized by law. Generally, these limits are $250 thousand per account owner for interest bearing and non-interest bearing accounts. The ratio of total loans, excluding loans HFS and restricted real estate loans, to core deposits was 91 percent in 2016 compared to 89 percent in 2015.

FHN also may use unsecured short-term borrowings as a source of liquidity. Currently, the largest concentration of unsecured borrowings is federal funds purchased from bank correspondent customers. These funds are considered to be substantially more stable than funds purchased in the national broker markets for federal funds due to the long, historical, and reciprocal nature of banking services provided by FHN to these correspondent banks. The remainder of FHN’s wholesale short-term borrowings is repurchase agreement transactions accounted for as secured borrowings with the Regional Bank’s business customers or Fixed Income’s broker dealer counterparties.

Both FHN and FTBNA may access the debt markets in order to provide funding through the issuance of senior or subordinated unsecured debt subject to market conditions and compliance with applicable regulatory requirements. In 2014, FTBNA issued $400 million of fixed rate senior notes due in December 2019. In October 2015, FHN issued $500 million of fixed rate senior notes due in December 2020. FHN also maintains $26.1 million of borrowings which are secured by residential real estate loans in a consolidated securitization trust.

Both FHN and FTBNA have the ability to generate liquidity by issuing preferred equity, and (for FHN) by issuing common equity, subject to market conditions and compliance with applicable regulatory requirements. In January 2013, FHN issued $100 million of Non-Cumulative Perpetual Preferred Stock, Series A. As of September 30, 2016, FTBNA and subsidiaries had outstanding preferred shares of $295.4 million, which are reflected as noncontrolling interest on the Consolidated Condensed Statements of Condition.

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Parent company liquidity is primarily provided by cash flows stemming from dividends and interest payments collected from subsidiaries. These sources of cash represent the primary sources of funds to pay cash dividends to shareholders and principal and interest to debt holders of FHN. The amount paid to the parent company through FTBNA common dividends is managed as part of FHN’s overall cash management process, subject to applicable regulatory restrictions. Certain regulatory restrictions exist regarding the ability of FTBNA to transfer funds to FHN in the form of cash, common dividends, loans, or advances. At any given time, the pertinent portions of those regulatory restrictions allow FTBNA to declare preferred or common dividends without prior regulatory approval in an aggregate amount equal to FTBNA’s retained net income for the two most recent completed years plus the current year to date. For any period, FTBNA’s ‘retained net income’ generally is equal to FTBNA’s regulatory net income reduced by the preferred and common dividends declared by FTBNA. Excess dividends in either of the two most recent completed years may be offset with available retained net income in the two years immediately preceding it. Applying the applicable rules, FTBNA’s total amount available for dividends was negative $156.2 million as of September 30, 2016, consequently, FTBNA could not pay common dividends to its sole common stockholder, FHN, or to its preferred shareholders without prior regulatory approval. FTBNA applied for and received approval from the OCC to declare and pay common dividends to FHN in first, second, third and fourth quarter 2016 in the amounts of $50 million, $120 million, $40 million, and $40 million, respectively, and in the amount of $325 million in 2015. FTBNA declared and paid preferred dividends in each quarter to date of 2016 and each quarter of 2015, with OCC approval as necessary. Additionally FTBNA declared preferred dividends in fourth quarter 2016, with OCC approval.

Payment of a dividend to shareholders of FHN is dependent on several factors which are considered by the Board. These factors include FHN’s current and prospective capital, liquidity, and other needs, applicable regulatory restrictions, and also availability of funds to FHN through a dividend from FTBNA. Additionally, the Federal Reserve and the OCC generally require insured banks and bank holding companies to pay cash dividends only out of current operating earnings. Consequently, the decision of whether FHN will pay future dividends and the amount of dividends will be affected by current operating results. FHN paid a cash dividend of $.07 per common share on October 3, 2016, and in October 2016 the Board approved a $.07 per common share cash dividend payable on January 3, 2017, to shareholders of record on December 9, 2016. FHN paid a cash dividend of $1,550.00 per preferred share on October 11, 2016, and in October 2016 the Board approved a $1,550.00 per preferred share cash dividend payable on January 10, 2017, to shareholders of record on December 23, 2016.

CASH FLOWS

The Consolidated Condensed Statements of Cash Flows provide information on cash flows from operating, investing, and financing activities for the nine months ended September 30, 2016 and 2015. The level of cash and cash equivalents increased $126.5 million during 2016 compared to an increase of $42.5 million in 2015. During the nine months ended September 30, 2016, cash provided by financing activities outpaced cash used by investing and operating activities, whereas during the nine months ended September 30, 2015, cash provided by investing activities and operating activities exceeded cash used by financing activities.

Net cash used by operating activities was $259.6 million in 2016 compared to net cash provided of $212.6 million in 2015. Cash outflows in 2016 were primarily due to net fixed income trading activities of $287.5 million, a $165 million cash contribution to the qualified pension plan, and net changes in operating assets and liabilities of $94.6 million. Operating cash flows in 2015 were favorably driven by cash-related net income items and a $194.2 million net increase in cash related to fixed income activities, but were somewhat offset by cash outflows related to operating assets and liabilities of $125.7 million.

Net cash used by investing activities was $1.6 billion in 2016, compared to net cash provided of $421.8 million in 2015. Cash outflows in 2016 were primarily attributable to a $1.9 billion increase in loans, which included $537.4 million UPB of loans acquired from GE Capital. Cash outflows were partially offset by a $383.0 million decrease in interest-bearing cash. In 2015, cash inflows were primarily attributed to a $1.0 billion decline in interest-bearing cash and $40.4 million of proceeds from the sale of properties, but were partially offset by loan growth within the regional bank and $102.7 million in net cash used in the available-for-sale securities portfolio.

Net cash provided by financing activities was $1.9 billion in 2016 compared to net cash used of $592.0 million in 2015. In 2016, cash inflows were positively affected by a $1.6 billion net increase in deposits and a $732.9 million increase in short-term borrowings, but were partially offset by $264.6 million in payments of long-term borrowings, which included the maturity of $250 million of subordinated notes. Additionally, share repurchases and dividend payments negatively affected financing cash flows in 2016. In 2015, cash was negatively affected by an $803.3 million decrease in short-term borrowings and $519.5 million in payments on long-term borrowings, which included the maturity of $304 million of subordinated notes and the redemption of $206 million of junior subordinated debentures underlying trust preferred securities. Additionally dividends and share repurchases negatively affected financing cash flows in 2015.

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REPURCHASE OBLIGATIONS, OFF-BALANCE SHEET ARRANGEMENTS, AND OTHER CONTRACTUAL OBLIGATIONS

Obligations from Legacy Mortgage Businesses

Overview

Prior to September 2008 FHN originated loans through its legacy mortgage business, primarily first lien home loans, with the intention of selling them. Sales typically were effected either as non-recourse whole loan sales or through non-recourse proprietary securitizations. Conventional conforming single-family residential mortgage loans were sold predominately to two GSEs: Fannie Mae and Freddie Mac. Also, federally insured or guaranteed whole loans were pooled, and payments to investors were guaranteed through Ginnie Mae. Many mortgage loan originations, especially nonconforming mortgage loans, were sold to investors, or certificate-holders, predominantly through FH proprietary securitizations but also, to a lesser extent, through other whole loans sold to private non-Agency purchasers. FHN used only one trustee for all of its FH proprietary securitizations. FHN also originated mortgage loans eligible for FHA insurance or VA guaranty.

In addition, FHN originated and sold HELOCs and second lien mortgages through other whole loans sold to private purchasers and, to a lesser extent, through FH proprietary securitizations. Currently, only one FH securitization of HELOCs remains outstanding.

For non-recourse loan sales, FHN has exposure for repurchase of loans, make-whole damages, or other related damages, arising from claims that FHN breached its representations and warranties made at closing to the purchasers, including GSEs, other whole loan purchasers, and the trustee of FH proprietary securitizations.

During the time these legacy activities were conducted, FHN frequently sold mortgage loans “with servicing retained.” As a result, FHN accumulated substantial amounts of MSR on its balance sheet, as well as contractual servicing obligations and related deposits and receivables. FHN conducted a significant servicing business under its First Horizon Home Loans brand.

MI was required by GSE rules for certain of the loans sold to GSEs and was also provided for certain of the loans that were securitized. MI generally was provided for first lien loans sold or securitized having an LTV ratio at origination of greater than 80 percent.

In 2007, market conditions deteriorated to the point where mortgage-backed securitizations could no longer be sold economically; FHN’s last securitization occurred that year. FHN continued selling mortgage loans to GSEs until August 31, 2008, when FHN sold its national mortgage origination and servicing platforms along with a portion of its servicing assets and obligations. FHN contracted to have its remaining servicing obligations sub-serviced. Since the platform sale FHN has sold substantially all remaining servicing assets and obligations in several transactions, concluding in 2014.

Certain mortgage-related terms used in this section are defined in “Mortgage-Related Glossary” below.

Repurchase and Make-Whole Obligations

Starting in 2009 FHN received a high number of claims either to repurchase loans from the purchaser or to pay the purchaser to “make them whole” for economic losses incurred. These claims have been driven primarily by loan delinquencies. In repurchase or make-whole claims a loan purchaser typically asserts that specified loans violated representations and warranties FHN made when the loans were sold. A significant majority of claims received overall have come from GSEs, and the remainder are from purchasers of other whole loan sales. FHN has not received a loan repurchase or make-whole claim from the FH proprietary securitization trustee.

Generally, FHN reviews each claim and MI cancellation notice individually. Those responses include appeal, provide additional information, deny the claim (rescission), repurchase the loan or remit a make-whole payment, or reflect cancellation of MI.

After several years resolving repurchase and make-whole claims with each GSE on a loan-by-loan basis, in 2013 and 2014 FHN entered into DRAs with the GSEs, resolving at once a large fraction of pending and potential future claims. Starting in 2014 the overall number of such claims diminished substantially, primarily as a result of the DRAs. Each DRA resolved obligations associated with loans originated from 2000 to 2008, but certain obligations and loans were excluded. Under each DRA, FHN remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of the GSE’s Charter Act) and FHN continues to have loan repurchase or monetary compensation obligations under the DRAs related to private mortgage insurance rescissions, cancellations, and denials (with certain exceptions). FHN also has exposure related to loans where there has been a prior bulk sale of servicing, as well as certain other whole-loan sales. With respect to loans where there has been a prior bulk sale of servicing, FHN is not responsible for MI cancellations and denials to the extent attributable to the acts of the current servicer.

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While large portions of repurchase claims from the GSEs were settled with the DRAs, large-scale settlement with non-Agency claimants is not practical. Those claims are resolved case by case or, occasionally, with less-comprehensive settlements. In second quarter 2016, in the largest such settlement to date, FHN settled certain repurchase claims which resulted in the reversal of $31.4 million of mortgage repurchase and foreclosure provision expense. Repurchase claims that are not resolved by the parties could become litigation.

FH Proprietary Securitization Actions

FHN has potential financial exposure from FH proprietary securitizations outside of the repurchase/make-whole process. Several investors in certificates sued FHN and others starting in 2009, and several underwriters or other counterparties have demanded that FHN indemnify and defend them in securitization lawsuits. The pending suits generally assert that disclosures made to investors in the offering and sale of certificates were legally deficient. A number of those matters have settled or otherwise been resolved, but several remain pending. See Note 10 – Contingencies and Other Disclosures for a discussion of certain actions pending against FHN in relation to FH proprietary securitizations.

Servicing Obligations

FHN’s national servicing business was sold as part of the platform sale in 2008. A significant amount of MSR was sold at that time, and a significant amount was retained. The related servicing activities, including foreclosure and loss mitigation practices, not sold in 2008 were outsourced through a three-year subservicing arrangement (the “2008 subservicing agreement”) with the platform buyer (the “2008 subservicer”). The 2008 subservicing agreement expired in 2011 when FHN entered into a replacement agreement with a new subservicer (the “2011 subservicer”). In fourth quarter 2013, FHN contracted to sell a substantial majority of its remaining servicing obligations and servicing assets (including advances) to the 2011 subservicer. The servicing was transferred to the buyer in stages, and was substantially completed in first quarter 2014. The servicing still retained by FHN continues to be subserviced.

As servicer, FHN had contractual obligations to the owners of the loans, primarily GSEs and securitization trustees, to handle billing, custodial, and other tasks related to each loan. Each subservicer undertook to perform those obligations on FHN’s behalf during the applicable subservicing period, although FHN legally remained the servicer of record for those loans that were subserviced.

The 2008 subservicer has been subject to a consent decree, and entered into a settlement agreement, with regulators related to alleged deficiencies in servicing and foreclosure practices. The 2008 subservicer has made demands of FHN, under the 2008 subservicing agreement, to pay certain resulting costs and damages totaling $43.5 million. FHN disagrees with those demands and has made no payments. This disagreement has the potential to result in litigation and, in any such future litigation, the claim against FHN may be substantial.

A certificate holder has contacted FHN, threatening to make claims based on alleged deficiencies in servicing loans held in certain FH proprietary securitization trusts. FHN cannot predict how this inquiry will proceed nor whether any claim or suit, if made or brought, will be material to FHN.

Origination Data

From 2005 through 2008, FHN originated and sold $69.5 billion of mortgage loans to the Agencies. This includes $57.6 billion of loans sold to GSEs and $11.9 billion of loans guaranteed by Ginnie Mae. Although FHN conducted these businesses before 2005, GSE loans originated in 2005 through 2008 account for a substantial majority of all repurchase requests/make-whole claims received since the 2008 platform sale.

From 2005 through 2007, $26.7 billion of mortgage loans were included in FH proprietary securitizations. On September 30, 2016, the remaining UPB of loans held in FH proprietary securitizations was $4.2 billion, comprised of $3.0 billion of Alt-A loans and $1.2 billion of Jumbo loans.

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Mortgage-Related Glossary

Agencies	the two GSEs and Ginnie Mae	GSEs	Fannie Mae and Freddie Mac
certificates	securities sold to investors representing interests in mortgage loan securitizations	HUD	Dept. of Housing and Urban Development
DOJ	U.S. Department of Justice	MI	private mortgage insurance, insuring against borrower payment default
DRA	definitive resolution agreement with a GSE	MSR	mortgage servicing rights
Fannie Mae, Fannie, FNMA	Federal National Mortgage Association	nonconforming loans	loans that did not conform to Agency program requirements
FH proprietary securitization	securitization of mortgages sponsored by FHN under its First Horizon brand	other whole loans sold	mortgage loans sold to private, non-Agency purchasers
FHA	Federal Housing Administration	2008 platform sale, platform sale, 2008 sale	FHN’s sale of its national mortgage origination and servicing platforms in 2008
FHFA	Federal Housing Financing Agency, conservator for the GSEs	Pipeline or active pipeline	pipeline of mortgage repurchase, make-whole, & certain related claims against FHN
Freddie Mac, Freddie, FHLMC	Federal Home Loan Mortgage Corporation	VA	Veterans Administration
Ginnie Mae, Ginnie, GNMA	Government National Mortgage   Association

Active Pipeline

FHN accumulates the amount of repurchase requests, make-whole claims, and certain other related claims into the “active pipeline.” The active pipeline includes the amount of claims for loan repurchase, make-whole payments, loans as to which MI has been canceled, and information requests from purchasers of loans originated and sold through FHN’s legacy mortgage banking business. MI was required for certain of the loans sold to GSEs or that were securitized. Although unresolved MI cancellation notices are not formal repurchase requests, FHN includes those loans in the active pipeline. Additionally, FHN is responsible for covering losses for purchasers to the extent there is a shortfall in MI insurance coverage (MI curtailment). Generally, the amount of a loan subject to a repurchase/make-whole claim, or with open MI issues, remains in the active pipeline throughout the resolution process with a claimant. During the last several years the active pipeline has steadily decreased, due in part to settlements and other resolutions, but also due to significant reductions in inflows. On September 30, 2016, the active pipeline was $52.1 million, down from $173.2 million a year ago.

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The following tables provide a rollforward of the number and unpaid principal amount of loans in the active repurchase request pipeline, including related unresolved MI cancellation notices and other requests for the three and nine months ended September 30, 2016:

Table 21 - Rollforward of the Active Pipeline

	July 1, 2016				Inflows				Resolutions						Settlement						Adjustments (c)						September 30, 2016
(Dollars in thousands)	Number		Amount		Number		Amount		Number			Amount			Number			Amount			Number			Amount			Number		Amount
Repurchase/make whole requests:
FNMA (a)		22	$	4,264		11	$	1,504		(14	)	$	(2,034	)		—		$	—			1		$	185			20	$	3,919
FHLMC (a)		6		1,074		1		198		(6	)		(1,011	)		—			—			—			—			1		261
GNMA		4		295		1		81		(3	)		(177	)		—			—			—			—			2		199
Non-Agency whole loan-related		125		19,108		2		183		—			—			—			—			—			—			127		19,291
MI Cancellations		14		3,344		23		3,561		(19	)		(4,512	)		—			—			(1	)		(66	)		17		2,327
MI Curtailments		155		26,338		3		341		(34	)		(6,738	)		—			—			3			551			127		20,492
Other requests (b)		62		8,682		7		800		(24	)		(4,004	)		—			—			—			151			45		5,629
Total		388	$	63,105		48	$	6,668		(100	)	$	(18,476	)		—		$	—			3		$	821			339	$	52,118
	January 1, 2016				Inflows				Resolutions						Settlement						Adjustments (c)						September 30, 2016
(Dollars in thousands)	Number		Amount		Number		Amount		Number			Amount			Number			Amount			Number			Amount			Number		Amount
Repurchase/make whole requests:
FNMA (a)		115	$	22,465		44	$	7,406		(52	)	$	(8,711	)		(87	)	$	(17,286	)		—		$	45			20	$	3,919
FHLMC (a)		10		1,699		5		918		(14	)		(2,446	)		(1	)		(50	)		1			140			1		261
GNMA		2		297		5		376		(5	)		(474	)		—			—			—			—			2		199
Non-Agency whole loan-related		131		19,971		6		1,018		(10	)		(1,698	)		—			—			—			—			127		19,291
MI Cancellations		23		5,214		41		6,793		(37	)		(7,718	)		(6	)		(934	)		(4	)		(1,028	)		17		2,327
MI Curtailments		535		89,805		68		10,806		(355	)		(59,051	)		(129	)		(22,236	)		8			1,168			127		20,492
Other requests (b)		190		27,881		25		3,167		(99	)		(15,495	)		(69	)		(9,842	)		(2	)		(82	)		45		5,629
Total		1,006	$	167,332		194	$	30,484		(572	)	$	(95,593	)		(292	)	$	(50,348	)		3		$	243			339	$	52,118

The following tables provide a rollforward of the number and unpaid principal amount of loans in the active repurchase request pipeline, including related unresolved MI cancellation notices and other requests for the three and nine months ended September 30, 2015:

	July 1, 2015				Inflows				Resolutions						Adjustments (c)						September 30, 2015
(Dollars in thousands)	Number		Amount		Number		Amount		Number			Amount			Number			Amount			Number		Amount
Repurchase/make whole requests:
FNMA (a)		115	$	22,420		36	$	3,664		(36	)	$	(3,764	)		1		$	217			116	$	22,537
FHLMC (a)		16		2,792		4		827		(5	)		(789	)		1			162			16		2,992
GNMA		4		464		—		1		(1	)		(286	)		—			—			3		179
Non-Agency whole loan-related		180		27,046		3		461		(23	)		(4,398	)		(1	)		—			159		23,109
MI Cancellations		30		6,140		11		2,459		(23	)		(4,302	)		(1	)		(304	)		17		3,993
MI Curtailments		580		98,168		26		3,764		(42	)		(7,397	)		3			348			567		94,883
Other requests (b)		137		20,641		93		16,340		(61	)		(11,938	)		3			414			172		25,457
Total		1,062	$	177,671		173	$	27,516		(191	)	$	(32,874	)		6		$	837			1,050	$	173,150
	January 1, 2015				Inflows				Resolutions						Adjustments (c)						September 30, 2015
(Dollars in thousands)	Number		Amount		Number		Amount		Number			Amount			Number			Amount			Number		Amount
Repurchase/make whole requests:
FNMA (a)		142	$	27,831		88	$	10,472		(114	)	$	(15,959	)		—		$	193			116	$	22,537
FHLMC (a)		19		3,310		14		2,850		(18	)		(3,330	)		1			162			16		2,992
GNMA		2		69		2		396		(2	)		(409	)		1			123			3		179
Non-Agency whole loan-related		171		25,827		22		3,895		(34	)		(6,768	)		—			155			159		23,109
MI Cancellations		28		6,004		54		10,097		(68	)		(12,256	)		3			148			17		3,993
MI Curtailments		594		101,063		178		30,451		(203	)		(36,256	)		(2	)		(375	)		567		94,883
Other requests (b)		65		10,825		222		35,228		(121	)		(21,262	)		6			666			172		25,457
Total		1,021	$	174,929		580	$	93,389		(560	)	$	(96,240	)		9		$	1,072			1,050	$	173,150

(a) Inflows represent amounts excluded from the DRAs.

(b) Other requests typically include requests for additional information from both GSE and non-GSE purchasers.

(c) Generally, adjustments reflect reclassifications between repurchase requests and MI cancellation notices and/or updates to UPB.

During 2016, the active pipeline decreased $115.2 million to $52.1 million on September 30, 2016. The decrease in the active pipeline was primarily related to the settlement of certain repurchase claims in second quarter 2016. On September 30, 2016, Agencies accounted for approximately 61 percent of the total active pipeline, inclusive of MI cancellation notices, MI curtailments, and all other claims. MI curtailment requests, the largest portion of the active pipeline are intended only to cover the shortfall in MI insurance proceeds, therefore FHN’s loss from MI curtailments as a percentage of UPB generally is significantly lower than that of a repurchase or make-whole claim. At September 30, 2016, the active pipeline contained no loan repurchase or make-whole requests from the FH proprietary securitization trustee related to first lien mortgage loans based on claims related to breaches of representations and warranties.

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Repurchase Accrual Methodology

Over the past several years FHN’s approach for determining the adequacy of the repurchase and foreclosure reserve has evolved, sometimes substantially, based on changes in information available. Repurchase/make-whole rates vary based on purchaser, vintage, and claim type. For those loans repurchased or covered by a make-whole payment, cumulative average loss severities range between 50 and 60 percent of the UPB.

Repurchase Accrual Approach

Repurchase/Make-whole and Damages obligations and estimates for probable incurred losses associated with loan populations excluded from the DRAs are included in FHN’s remaining repurchase liability as of September 30, 2016. Those remaining obligations primarily relate to future MI cancellations, loans included in bulk servicing sales effected prior to the DRAs, and other whole loans sold.

In determining the loss content of GSE loans subject to repurchase requests excluded from the DRAs (primarily loans included in bulk sales), FHN applies a vintage level estimate of loss to all loans sold to the GSEs that were not included in the settlements and which have not had a prior repurchase resolution. First, pre-payment, default, and claim rate estimates are applied by vintage to estimate the aggregate claims expected but not yet resolved. Historical loss factors for each sale vintage and repurchase rates are then applied to estimate total loss content. Loss content related to other whole loan sales is estimated by applying the historical average repurchase and loss severity rates to the current UPB in the active pipeline to calculate estimated losses attributable to the current pipeline. FHN then uses an internal model to calculate loss content by applying historical average loss repurchase and severity rates to historical average inflows. For purposes of estimating loss content, FHN also considers MI cancellations. When assessing loss content related to loans where MI has been cancelled, FHN applies historical loss factors (including repurchase rates and loss severity ratios) to the total unresolved MI cancellations in the active pipeline, as well as applying these factors to historical average inflows to estimate loss content. Additionally, FHN identifies estimated losses related to MI curtailment requests. Management also evaluates the nature of claims from purchasers and/or servicers of loans sold to determine if qualitative adjustments are appropriate.

Repurchase and Foreclosure Liability

The repurchase and foreclosure liability is comprised of reserves to cover estimated loss content in the active pipeline, as well as estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches described above for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision.

The following table provides a rollforward of the legacy mortgage repurchase liability during the three and nine months ended September 30, 2016 and 2015:

Table 22 - Reserves for Repurchase and Foreclosure Losses

	Three Months Ended						Nine Months Ended
	September 30						September 30
(Dollars in thousands)	2016			2015			2016			2015
Legacy Mortgage
Beginning balance	$	67,383		$	116,554		$	114,947		$	119,404
Provision for repurchase and foreclosure losses (a)		(218	)		—			(31,618	)		—
Net realized gain/(losses)		(203	)		(1,773	)		(16,367	)		(4,623	)
Balance on September 30	$	66,962		$	114,781		$	66,962		$	114,781

(a) In second quarter 2016, FHN settled certain repurchase claims which resulted in the reversal of $31.4 million of mortgage repurchase and foreclosure provision.

Government-Backed Mortgage Lending Programs

FHN’s FHA and VA program lending was substantial prior to the 2008 platform sale, and has continued at a much lower level since then. As lender, FHN made certain representations and warranties as to the compliance of the loans with program requirements. Over

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the past several years, most recently in first quarter 2015, FHN occasionally has recognized significant losses associated with settling claims and potential claims by government agencies, and by private parties asserting claims on behalf of agencies, related to these origination activities. At September 30, 2016, FHN had not accrued a liability for any matter related to these government lending programs, and no pending or known threatened matter related to these programs represented a material loss contingency described in Note 10 – Contingencies and Other Disclosures.

Other FHN Mortgage Exposures

At September 30, 2016, FHN had not accrued a liability for exposure for repurchase of first-lien loans related to FH proprietary securitizations arising from claims from the trustee that FHN breached its representations and warranties in FH proprietary securitizations at closing. FHN’s trustee is a defendant in a lawsuit in which the plaintiffs have asserted that the trustee has duties to review loans and otherwise to act against loan originators and loan servicers, including FHN, outside of the duties specified in the applicable trust documents; FHN is not a defendant in that suit and is not able to assess what, if any, exposure FHN may have as a result of it.

FHN is defending, directly or as indemnitor, certain pending lawsuits brought by purchasers of certificates in FH proprietary securitizations or their assignees. FHN believes a new lawsuit based on federal securities claims that offering disclosures were deficient cannot be brought at this time due to the running of applicable limitation periods, but other investor claims, based on other legal theories, might still be possible. Due to the sales of MSR from 2008 through 2014, FHN has limited visibility into current loan information such as principal payoffs, refinance activity, delinquency trends, and loan modification activity.

Many non-GSE purchasers of whole loans from FHN included those loans in their own securitizations. Regarding such other whole loans sold, FHN made representations and warranties concerning the loans and provided indemnity covenants to the purchaser/securitizer. Typically the purchaser/securitizer assigned key contractual rights against FHN to the securitization trustee. As mentioned above, repurchase and make-whole claims related to specific loans are included in the active pipeline and repurchase reserve. In addition, currently the following categories of actions are pending which involve FHN and other whole loans sold: (i) FHN has received indemnification requests from purchasers of loans or their assignees in cases where FHN is not a defendant; (ii) FHN has received subpoenas seeking loan reviews in cases where FHN is not a defendant; (iii) FHN has received repurchase demands from purchasers or their assignees; and (iv) FHN is a defendant in legal actions involving FHN-originated loans. At September 30, 2016, FHN had not accrued a liability for any litigation matter related to other whole loans sold; however, FHN’s repurchase and foreclosure liability included certain known exposures from other whole loans sold.

Certain government entities have subpoenaed information from FHN and others. These entities include the FDIC (on behalf of certain failed banks) and the FHLBs of San Francisco, Atlanta, and Seattle, among others. These entities purport to act on behalf of several purchasers of FH proprietary securitizations, and of non-FH securitizations which included other whole loans sold. Collectively, the subpoenas seek information concerning: a number of FH proprietary securitizations and/or underlying loan originations; and originations of certain other whole loans sold which, in many cases, were included by the purchaser in its own securitizations. Some subpoenas fail to identify the specific investments made or loans at issue. Moreover, FHN has limited information regarding at least some of the loans under review. Unless and until a review (if related to specific loans) becomes an identifiable repurchase claim, the associated loans are not considered part of the active pipeline.

MARKET UNCERTAINTIES AND PROSPECTIVE TRENDS

During 2015 and the first three quarters of 2016 the national economy generally exhibited modest growth. However, certain economic indicators have been mixed and the pace of recovery from the 2008-2009 recession has been uneven and could regress. As uncertainties remain surrounding the national economy, the housing market, Fed monetary policy, the competitive landscape (including competition from non-traditional financial service providers), the regulatory and political environment, U.S. government spending generally, and global economic and political situations, FHN may continue to be faced with challenges. Although management considers asset quality at FHN to be strong, external factors may result in increased credit costs and loan loss provisioning and could also suppress loan demand from borrowers and further increase competition among financial institutions resulting in continued pressure on net interest income. Additionally, a downturn in the economic environment or disruptions in the housing market could affect borrower defaults and actions by MI companies which could result in elevated repurchase, make-whole, or other monetary requests from GSEs and third party whole loan purchasers relative to current projections or could impact losses recognized by investors in FH proprietary securitizations which could result in demands or litigation. See the Repurchase Obligations, Off-Balance Sheet Arrangements, and Other Contractual Obligations section within this MD&A, and Note 10 – Contingencies and Other Disclosures within this report for additional discussion regarding FHN’s repurchase obligations.

In recent years, the Federal Reserve has implemented significant economic strategies that have impacted interest rates, inflation, asset values, and the shape of the yield curve, and currently may be transitioning from many years of easing to what may be an extended

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period of gradual tightening. Effects on the yield curve often are most pronounced at the short end of the curve. Among other things, easing strategies are intended to lower interest rates, flatten the yield curve, expand the money supply, and stimulate economic activity, while tightening strategies are intended to increase interest rates, steepen the yield curve, tighten the money supply, and restrain economic activity. Other things being equal, the current transition from easing to tightening (if it continues) should tend to diminish or reverse downward pressure on rates, and to diminish or eventually end the stimulus effect that low interest rates tend to have on the economy. Many external factors may interfere with the effects of these plans or cause them to change unexpectedly. Such factors include significant economic trends, such as another U.S. contraction or recession, or events as well as significant international monetary policies and events.

Although FHN has little direct exposure to non-U.S.-dollar-denominated assets or to foreign sovereign debt, major adverse events outside the U.S. could have a substantial indirect impact on FHN. Because the U.S. economy and the businesses of many of our customers are linked significantly to global economic and market conditions, a major adverse event could negatively impact liquidity in the U.S. causing funding costs to rise, or could potentially limit availability of funding through conventional markets in a worst-case scenario. FHN also could be adversely affected by events outside of the U.S. impacting hedging or other counterparties, customers with non-U.S. businesses and/or assets denominated in foreign currencies, the U.S. economy, interest rates, inflation/deflation rates, and the regulatory environment should there be a political response to major financial disruptions, all of which could have a financial impact on FHN.

Foreclosure Practices

FHN anticipates continued compliance challenges relating to foreclosure, loss mitigation, and servicing practices in connection with its efforts to comply with regulations and standards issued by the OCC and the CFPB including those relating to vendor management and changes in applicable state law relating to foreclosure and loss mitigation.

In addition, FHN retains exposure for potential deficiencies in servicing related to its legacy servicing business and subservicing arrangements. Further details regarding these legacy matters are provided in “Obligations from Legacy Mortgage Businesses – Overview – Servicing Obligations” under “Repurchase Obligations, Off-Balance Sheet Arrangements, and Other Contractual Obligations.”

CRITICAL ACCOUNTING POLICIES

There have been no significant changes to FHN’s critical accounting policies as described in “Critical Accounting Policies” beginning on page 64 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

ACCOUNTING CHANGES ISSUED BUT NOT CURRENTLY EFFECTIVE

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial instruments. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance for licensing arrangements. ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. The effective date of these ASUs has been deferred to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN is evaluating the effects of these ASUs on its revenue recognition practices.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires an entity’s management to evaluate whether there are conditions or events, considered in the

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aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such events or conditions exist, additional disclosures are required and management should evaluate whether its plans sufficiently alleviate the substantial doubt. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and all interim and annual periods thereafter. The provisions of ASU 2014-15 are not anticipated to affect FHN.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net income. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-01 on its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 leaves lessor accounting largely unchanged from prior standards. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset. For finance leases, interest on the lease liability is recognized separately from amortization of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term. For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements. ASU 2016-02 also requires expanded qualitative and quantitative disclosures to assess the amount, timing, and uncertainty of cash flows arising from lease arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid-stored value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds. ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account. ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires will be recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Consistent with this change, excess tax benefits and deficiencies will no longer be included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share. Excess tax benefits will also be recognized at the time an award is exercised or vests compared to the current requirement to delay recognition until the deduction reduces taxes payable. The presentation of excess tax benefits in the statement of cash flows will shift to an operating activity from the current classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur rather than the current requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to

116

withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under current guidance, withholding of equity awards in excess of the minimum statutory requirement results in liability classification for the entire award. The related cash remittance by the employer for employee taxes will be treated as a financing activity in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Transition to the new guidance will be accomplished through a combination of retrospective, cumulative-effect adjustment to equity and prospective methodologies. FHN currently estimates that adoption of ASU 2016-09 will result in an increase in tax provision in 2017 between $1.0 million and $2.0 million. The effects on earnings per share calculations and elections to account for forfeitures as incurred are not anticipated to be significant.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected. This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination. ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value. However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”). For PCD assets, the initial allowance for credit losses is added to the purchase price. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption. Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized. Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption will be recorded in earnings when received. A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than insignificant credit deterioration since origination. An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018. FHN is evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices. Since the CECL methodology encompasses a “life of loan” requirement for the recognition of credit losses, the estimated amount of such losses will be larger than the estimate of probable incurred losses under current standards. The extent of this difference will be dependent upon economic considerations and loan portfolio characteristics at the time of adoption.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists. ASU 2016-15 also provides an accounting policy election to classify cash flows from an equity method investee under the cumulative earnings approach or the nature of distribution approach. Finally, ASU 2016-15 provides guidance on the presentation of individual cash flows with characteristics of multiple classifications. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The provisions of ASU 2016-15 should be applied using a retrospective transition method to each period presented. FHN is evaluating the impact of ASU 2016-15 on its current cash flow presentation practices.

117

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The information called for by this item is contained in

(a) Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 2 of Part I of this report, including in particular the section entitled “Risk Management” beginning on page 104 of this report and the subsections entitled “Market Risk Management” beginning on page 104 and “Interest Rate Risk Management” beginning on page 106 of this report, and

(b) Note 14 to the Consolidated Condensed Financial Statements appearing on pages 50-55 of this report,

all of which materials are incorporated herein by reference. For additional information concerning market risk and our management of it, refer to: Management’s Discussion and Analysis of Financial Condition and Results of Operations appearing in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015, including in particular the section entitled “Risk Management” beginning on page 48 of that Report and the subsections entitled “Market Risk Management” beginning on page 49 and “Interest Rate Risk Management” appearing on pages 52-53 of that Report; and Note 22 to the Consolidated Financial Statements appearing on pages 156-161 of Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures. FHN’s management, with the participation of FHN’s chief executive officer and chief financial officer, has evaluated the effectiveness of FHN’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this quarterly report. Based on that evaluation, the chief executive officer and the chief financial officer have concluded that FHN’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) Changes in Internal Control over Financial Reporting. There have not been any changes in FHN’s internal control over financial reporting during FHN’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, FHN’s internal control over financial reporting.

118

Part II.

OTHER INFORMATION

Item 1 Legal Proceedings

The “Contingencies” section of Note 10 to the Consolidated Condensed Financial Statements beginning on page 34 of this Report is incorporated into this Item by reference.

Item 1A Risk Factors

Not applicable

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

(a) & (b) Not Applicable

(c) Table 7 captioned “Issuer Purchases of Common Stock,” including the explanatory notes included in Item 2 of Part I of this report under the heading “First Horizon National Corporation Management’s Discussion and Analysis of Financial Condition and Results of Operations,” beginning on page 90 of this report, is incorporated herein by reference.

Items 3, 4, and 5

Not applicable

119

Item 6. Exhibits

(a) Exhibits

Exhibits marked * represent management contracts or compensatory plans or arrangements required to be identified as such and filed as exhibits.

Exhibits marked ** are “furnished” pursuant to 18 U.S.C. Section 1350 and are not “filed” as part of this Report or as a separate disclosure document.

Exhibits marked *** contain or consist of interactive data file information which is unaudited and unreviewed.

In many agreements filed as exhibits, each party makes representations and warranties to other parties. Those representations and warranties are made only to and for the benefit of those other parties in the context of a business contract. Such representations and warranties may be partially or fully waived by such parties, or not enforced by such parties, in their discretion. No such representation or warranty may be relied upon by any other person for any purpose.

Exhibit No.	Description
4	FHN agrees to furnish to the Securities and Exchange Commission upon request a copy of each instrument defining the rights of the holders of the senior and subordinated long-term debt of FHN and its consolidated subsidiaries.
10.1*	Rate Applicable to Participating Directors and Executive Officers under the Directors and Executives Deferred Compensation Plan
31(a)	Rule 13a-14(a) Certifications of CEO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
31(b)	Rule 13a-14(a) Certifications of CFO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
32(a)**	18 USC 1350 Certifications of CEO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
32(b)**	18 USC 1350 Certifications of CFO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
101***	The following financial information from First Horizon National Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL: (i) Consolidated Condensed Statements of Condition at September 30, 2016 and 2015, and December 31, 2015; (ii) Consolidated Condensed Statements of Income for the Three and Nine Months Ended September 30, 2016 and 2015; (iii) Consolidated Condensed Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2016 and 2015; (iv) Consolidated Condensed Statements of Equity for the Nine Months Ended September 30, 2016 and 2015; (v) Consolidated Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015; (vi) Notes to Consolidated Condensed Financial Statements.
101.INS***	XBRL Instance Document
101.SCH***	XBRL Taxonomy Extension Schema
101.CAL***	XBRL Taxonomy Extension Calculation Linkbase
101.LAB***	XBRL Taxonomy Extension Label Linkbase
101.PRE***	XBRL Taxonomy Extension Presentation Linkbase
101.DEF***	XBRL Taxonomy Extension Definition Linkbase

120

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST HORIZON NATIONAL CORPORATION
		(Registrant)
DATE: November 7, 2016	By:	/s/ William C. Losch III
	Name:	William C. Losch III
	Title:	Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

121

EXHIBIT INDEX

Exhibits marked * represent management contracts or compensatory plans or arrangements required to be identified as such and filed as exhibits.

Exhibits marked ** are “furnished” pursuant to 18 U.S.C. Section 1350 and are not “filed” as part of this Report or as a separate disclosure document.

Exhibits marked *** contain or consist of interactive data file information which is unaudited and unreviewed.

In many agreements filed as exhibits, each party makes representations and warranties to other parties. Those representations and warranties are made only to and for the benefit of those other parties in the context of a business contract. Such representations and warranties may be partially or fully waived by such parties, or not enforced by such parties, in their discretion. No such representation or warranty may be relied upon by any other person for any purpose.

Exhibit No.	Description
4	FHN agrees to furnish to the Securities and Exchange Commission upon request a copy of each instrument defining the rights of the holders of the senior and subordinated long-term debt of FHN and its consolidated subsidiaries.
10.1*	Rate Applicable to Participating Directors and Executive Officers under the Directors and Executives Deferred Compensation Plan
31(a)	Rule 13a-14(a) Certifications of CEO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
31(b)	Rule 13a-14(a) Certifications of CFO (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
32(a)**	18 USC 1350 Certifications of CEO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
32(b)**	18 USC 1350 Certifications of CFO (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)
101***	The following financial information from First Horizon National Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL: (i) Consolidated Condensed Statements of Condition at September 30, 2016 and 2015, and December 31, 2015; (ii) Consolidated Condensed Statements of Income for the Three and Nine Months Ended September 30, 2016 and 2015; (iii) Consolidated Condensed Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2016 and 2015; (iv) Consolidated Condensed Statements of Equity for the Nine Months Ended September 30, 2016 and 2015; (v) Consolidated Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015; (vi) Notes to Consolidated Condensed Financial Statements.
101.INS***	XBRL Instance Document
101.SCH***	XBRL Taxonomy Extension Schema
101.CAL***	XBRL Taxonomy Extension Calculation Linkbase
101.LAB***	XBRL Taxonomy Extension Label Linkbase
101.PRE***	XBRL Taxonomy Extension Presentation Linkbase
101.DEF***	XBRL Taxonomy Extension Definition Linkbase

122

EX-10.1

EXHIBIT 10.1

RATE APPLICABLE TO

PARTICIPATING DIRECTORS AND EXECUTIVE OFFICERS UNDER THE

DIRECTORS AND EXECUTIVES DEFERRED COMPENSATION PLAN

Effective for the 2017 plan year, the Board of Directors and its Compensation Committee have approved an applicable interest rate for the Directors and Executives Deferred Compensation Plan of 9.28%. That rate is a decrease from the 10.16% rate in effect for 2016, and applies prospectively to certain participants, including all participants who presently are directors or officers of the registrant. Rates are subject to annual approval by the Board, but generally remain in effect until changed. The new interest rate, within the context of the entire Plan, has been established at a level intended to provide both retention and long-term non-compete incentives. When a participant retires after 2010 due to mandatory retirement, the participant’s interest rate during retirement will be the highest rate in place over the past three years—that is, the highest of the rates applicable during the year of retirement and the previous two years.

EX-31.(A)

Exhibit 31(a)

FIRST HORIZON NATIONAL CORPORATION

RULE 13a – 14(a) CERTIFICATIONS OF CEO

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(QUARTERLY REPORT)

CERTIFICATIONS

I, D. Bryan Jordan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of First Horizon National Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2016

/s/ D. Bryan Jordan

D. Bryan Jordan

Chairman of the Board, President and Chief Executive Officer

EX-31.(B)

Exhibit 31(b)

FIRST HORIZON NATIONAL CORPORATION

RULE 13a – 14(a) CERTIFICATIONS OF CFO

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(QUARTERLY REPORT)

CERTIFICATIONS

I, William C. Losch III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of First Horizon National Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2016

/s/ William C. Losch III

William C. Losch III

Executive Vice President and Chief Financial Officer

EX-32.(A)

Exhibit 32(a)

CERTIFICATION OF PERIODIC REPORT

18 USC 1350 CERTIFICATIONS OF CEO

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,

As Codified at 18 U.S.C. Section 1350

I, the undersigned D. Bryan Jordan, Chairman of the Board, President and Chief Executive Officer of First Horizon National Corporation (“Corporation”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, as follows:

1. The Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated: November 7, 2016

/s/ D. Bryan Jordan

D. Bryan Jordan

Chairman of the Board, President and Chief Executive Officer

EX-32.(B)

Exhibit 32(b)

CERTIFICATION OF PERIODIC REPORT

18 USC 1350 CERTIFICATIONS OF CFO

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,

As Codified at 18 U.S.C. Section 1350

I, the undersigned William C. Losch III, Executive Vice President and Chief Financial Officer of First Horizon National Corporation (“Corporation”), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, as follows:

1. The Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934.

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated: November 7, 2016

/s/ William C. Losch III

William C. Losch III

Executive Vice President and Chief Financial Officer

XML

Document And Entity Information	9 Months Ended
	Sep. 30, 2016 shares
Document And Entity Information [Abstract]
Entity Registrant Name	FIRST HORIZON NATIONAL CORP
Entity Central Index Key	0000036966
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	233,234,592
trading symbol	FHN

XML

Consolidated Condensed Statements Of Condition - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015		Sep. 30, 2015
Assets:
Cash and due from banks		$ 327,639		$ 300,811		$ 256,342
Federal funds sold		27,097		114,479		64,438
Securities purchased under agreements to resell (Note 15)		802,815		615,773		793,098
Total cash and cash equivalents		1,157,551		1,031,063		1,113,878
Interest-bearing cash		219,834		602,836		596,689
Trading securities		1,320,535		881,450		1,229,180
Loans held-for-sale	[1]	155,215		126,342		124,308
Securities available-for-sale (Note 3)		4,027,594	[2]	3,929,846		3,673,641	[3]
Securities held-to-maturity (Note 3)		14,340		14,320		4,313
Loans, net of unearned income (Note 4)	[4]	19,555,787		17,686,502		16,725,492
Less: Allowance for loan losses (Note 5)		201,557		210,242		210,814
Total net loans		19,354,230		17,476,260		16,514,678
Goodwill (Note 6)		191,371		191,307	[5]	145,932
Other intangible assets, net (Note 6)	[6]	22,317		26,215		25,624
Fixed income receivables		91,997		63,660		83,547
Premises and equipment, net (September 30, 2016 includes $7.8 million classified as held-for-sale)		279,178		275,619		269,332
Real estate acquired by foreclosure	[7]	18,945		33,063		35,332
Derivative assets (Note 14)		160,736		104,365		152,548
Other assets		1,435,379		1,436,291		1,417,071
Total assets		28,449,222		26,192,637		25,386,073
Deposits:
Savings		8,753,115		7,811,191		7,554,338
Time deposits		732,561		788,487		743,158
Other interest-bearing deposits		5,605,734		5,388,526		4,885,601
Certificates of deposit $100,000 and more		592,518		443,389		290,738
Interest-bearing		15,683,928		14,431,593		13,473,835
Noninterest-bearing		5,890,252		5,535,885		5,391,385
Total deposits		21,574,180		19,967,478		18,865,220
Federal funds purchased		538,284		464,166		520,992
Securities sold under agreements to repurchase (Note 15)		341,998		338,133		332,329
Trading liabilities		702,226		566,019		788,563
Other short-term borrowings		792,736		137,861		99,887
Term borrowings		1,065,651		1,312,677		1,339,940
Fixed income payables		68,897		23,072		95,346
Derivative liabilities (Note 14)		144,829		108,339		140,965
Other liabilities		475,839		635,306		622,586
Total liabilities		25,704,640		23,553,051		22,805,828
First Horizon National Corporation Shareholders' Equity:
Preferred stock - Series A, non-cumulative perpetual, no par value, liquidation preference of $100,000 per share - (shares authorized - 1,000; shares issued - 1,000 on September 30, 2016, September 30, 2015 and December 31, 2015)		95,624		95,624		95,624
Common stock - $.625 par value (shares authorized - 400,000,000; shares issued - 233,234,592 on September 30, 2016; 234,237,439 on September 30, 2015 and 238,586,637 on December 31, 2015)		145,772		149,117		146,398
Capital surplus		1,376,319		1,439,303		1,377,731
Undivided profits		992,264		874,303		841,737
Accumulated other comprehensive loss, net (Note 8)		(160,828)		(214,192)		(176,676)
Total First Horizon National Corporation Shareholders' Equity		2,449,151		2,344,155		2,284,814
Noncontrolling interest		295,431		295,431		295,431
Total equity		2,744,582		2,639,586		2,580,245
Total liabilities and equity		$ 28,449,222		$ 26,192,637		$ 25,386,073

[1] September 30 , 2016 and 2015 an d December 31, 2015 include $17.2 million , $ 21.7 million and $22.4 million, respectively, of held-for-sale consumer mortgage loans secured by residentia l real estate in process of foreclosure.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[3] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[4] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[5] The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

[6] Represents customer lists, acquired contracts, core deposit intangibles, and covenants not to compete.

[7] September 30 , 2016 and 2015 an d December 31, 2015 include $9.7 million , $ 15.6 million and $14.6 million, respectively, of foreclosed residential real estate.

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Consolidated Condensed Statements of Condition (Parenthetical) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Real estate acquired by foreclosure	[1]	$ 18,945	$ 33,063	$ 35,332
Common stock, par value		$ 0.625	$ 0.625	$ 0.625
Common stock, shares authorized		400,000,000	400,000,000	400,000,000
Common stock, shares issued		233,234,592	238,586,637	234,237,439
Preferred stock, no par value		$ 0	$ 0	$ 0
Preferred Stock Liquidation Preference Value		$ 100,000	$ 100,000	$ 100,000
Preferred stock, shares authorized		1,000	1,000	1,000
Preferred stock, shares issued		1,000	1,000	1,000
Premises and Equipment classified as held-for-sale		$ 7,800
Residential Real Estate [Member]
Mortgage Loans In Process Of Foreclosure Amount		30,300	$ 29,700	$ 30,700
Real estate acquired by foreclosure		9,700	14,600	15,600
Residential Real Estate [Member] | Loans Held For Sale [Member]
Mortgage Loans In Process Of Foreclosure Amount		$ 17,200	$ 22,400	$ 21,700

[1] September 30 , 2016 and 2015 an d December 31, 2015 include $9.7 million , $ 15.6 million and $14.6 million, respectively, of foreclosed residential real estate.

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Consolidated Condensed Statements Of Income - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016		Sep. 30, 2015
Interest income:
Interest and fees on loans	$ 174,039,000	$ 150,555,000	$ 495,516,000		$ 447,735,000
Interest on investment securities available-for-sale	23,655,000	23,233,000	72,082,000		69,355,000
Interest on investment securities held-to-maturity	197,000	66,000	592,000		198,000
Interest on loans held-for-sale	1,445,000	1,311,000	3,904,000		4,152,000
Interest on trading securities	6,793,000	8,056,000	22,564,000		26,108,000
Interest on other earning assets	843,000	466,000	3,354,000		1,237,000
Total interest income	206,972,000	183,687,000	598,012,000		548,785,000
Interest on deposits:
Savings	4,939,000	2,785,000	13,275,000		9,062,000
Time deposits	1,117,000	1,230,000	3,377,000		3,986,000
Other interest-bearing deposits	2,592,000	1,118,000	7,422,000		3,179,000
Certificates of deposit $100,000 and more	1,379,000	756,000	3,916,000		2,468,000
Interest on trading liabilities	3,331,000	4,258,000	11,152,000		11,942,000
Interest on short-term borrowings	1,254,000	664,000	3,585,000		2,436,000
Interest on term borrowings	7,165,000	9,314,000	21,752,000		28,644,000
Total interest expense	21,777,000	20,125,000	64,479,000		61,717,000
Net interest income	185,195,000	163,562,000	533,533,000		487,068,000
Provision for loan losses	4,000,000	1,000,000	11,000,000		8,000,000
Net interest income after provision for loan losses	181,195,000	162,562,000	522,533,000		479,068,000
Noninterest income:
Fixed income	71,748,000	51,804,000	216,638,000		169,664,000
Deposit transactions and cash management	27,221,000	28,911,000	81,049,000		83,892,000
Brokerage, management fees and commissions	10,828,000	11,620,000	31,908,000		35,475,000
Trust services and investment management	6,885,000	6,590,000	20,674,000		20,704,000
Bankcard income	6,260,000	5,561,000	18,077,000		16,631,000
Bank-owned life insurance	3,997,000	4,135,000	11,129,000		10,988,000
Other service charges	3,004,000	2,968,000	8,713,000		8,859,000
Insurance commissions	1,262,000	608,000	2,301,000		1,858,000
Equity securities gains/(losses), net (Note 3)	(200,000)	(345,000)	(181,000)		(61,000)
Debt secutities gains/(losses), net (Note 3)	0	0	1,654,000		0
All other income and commissions (Note 7)	17,540,000	13,251,000	36,402,000		37,083,000
Total noninterest income	148,545,000	125,103,000	428,364,000		385,093,000
Adjusted gross income after provision for loan losses	329,740,000	287,665,000	950,897,000		864,161,000
Noninterest expense:
Employee compensation, incentives, and benefits	145,103,000	116,219,000	425,624,000		375,633,000
Occupancy	12,722,000	13,282,000	38,062,000		37,264,000
Operations services	10,518,000	10,130,000	30,939,000		29,500,000
Computer software	10,400,000	11,010,000	33,213,000		33,292,000
Equipment rentals, depreciation, and maintenance	6,085,000	7,093,000	19,426,000		22,296,000
Advertising and public relations	6,065,000	4,832,000	15,519,000		13,914,000
FDIC premium expense	5,721,000	4,529,000	15,490,000		12,929,000
Professional fees	4,859,000	5,139,000	14,342,000		14,063,000
Legal fees	4,750,000	3,626,000	15,520,000		11,686,000
Communications and courier	3,883,000	4,054,000	10,672,000		11,731,000
Other insurance and taxes	2,625,000	3,283,000	8,952,000		10,067,000
Contract employment and outsourcing	2,443,000	3,414,000	7,365,000		11,335,000
Amortization of intangible assets	1,299,000	1,298,000	3,898,000	[1]	3,894,000	[1]
Foreclosed real estate	815,000	431,000	125,000		1,629,000
Repurchase and foreclosure provision	(218,000)	0	(31,618,000)		0
All other expense (Note 7)	16,488,000	27,096,000	79,778,000		220,818,000
Total noninterest expense	233,558,000	215,436,000	687,307,000		810,051,000
Income/(loss) before income taxes	96,182,000	72,229,000	263,590,000		54,110,000
Provision/(benefit) for income taxes	28,547,000	8,897,000	82,802,000		8,226,000
Net income/(loss)	67,635,000	63,332,000	180,788,000		45,884,000
Net income attributable to noncontrolling interest	2,883,000	2,977,000	8,586,000		8,586,000
Net income/(loss) attributable to controlling interest	64,752,000	60,355,000	172,202,000		37,298,000
Preferred stock dividends	1,550,000	1,550,000	4,650,000		4,650,000
Net income/(loss) available to common shareholders	$ 63,202,000	$ 58,805,000	$ 167,552,000		$ 32,648,000
Basic earnings/(loss) per share (Note 9)	$ 0.27	$ 0.25	$ 0.72		$ 0.14
Diluted earnings/(loss) per share (Note 9)	$ 0.27	$ 0.25	$ 0.71		$ 0.14
Weighted average common shares (Note 9)	231,856	233,111	232,690		232,910
Diluted average common shares (Note 9)	234,092	235,058	234,775		234,838
Cash dividends declared per common share	$ 0.07	$ 0.06	$ 0.21		$ 0.18

[1] Represents customer lists, acquired contracts, core deposit intangibles, and covenants not to compete.

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Consolidated Condensed Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016		Sep. 30, 2015
Statements of Comprehensive Income/(loss)
Net income/(loss)	$ 67,635	$ 63,332	$ 180,788		$ 45,884
Other comprehensive income/(loss), net of tax:
Net unrealized gains/(losses) on securities available-for-sale	(7,887)	15,427	47,310		13,331
Net unrealized gains/(losses) on cash flow hedges	(1,570)	0	3,121		0
Net unrealized gains/(losses) on pension and other postretirement plans	963	(3,855)	2,933		(1,761)
Other comprehensive income/(loss)	(8,494)	11,572	53,364	[1]	11,570	[1]
Comprehensive income/(loss)	59,141	74,904	234,152		57,454
Comprehensive income attributable to noncontrolling interest	2,883	2,977	8,586		8,586
Comprehensive income/(loss) attributable to controlling interest	56,258	71,927	225,566		48,868
Income tax expense/(benefit) of items included in Other Comprehensive Income/(Loss):
Net unrealized gains/(losses) on securities available-for-sale	(4,902)	9,548	29,402		8,228
Net unrealized gains/(losses) on cash flow hedges	(975)	0	1,940		0
Net unrealized gains/(losses) on pension and other postretirement plans	$ 598	$ (2,411)	$ 1,823		$ (1,093)

[1] Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

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Consolidated Condensed Statements of Equity-Q - USD ($) $ in Thousands		Total	Noncontrolling Interest	Controlling Interest
Balance, at Dec. 31, 2014		$ 2,581,590	$ 295,431	$ 2,286,159
Net income/(loss)		45,884	8,586	37,298
Other comprehensive income/(loss)	[1]	11,570	0	11,570
Comprehensive income/(loss)		57,454	8,586	48,868
Cash dividends declared:
Preferred stock ($4,650 per share for the nine months ended September 30, 2016 and 2015)		(4,650)	0	(4,650)
Common stock ($.21 and $.18 per share for the nine months ended September 30, 2016 and 2015, respectively)		(42,496)	0	(42,496)
Common stock repurchased	[2]	(20,052)	0	(20,052)
Common stock issued for:
Stock options and restricted stock-equity awards		6,577	0	6,577
Stock-based compensation expense		9,952	0	9,952
Dividends declared-noncontrolling interest of subsidiary preferred stock		(8,586)	(8,586)	0
Tax benefit/(benefit reversal)-stock based compensation expense		456	0	456
Balance, at Sep. 30, 2015		2,580,245	295,431	2,284,814
Balance, at Dec. 31, 2015		2,639,586	295,431	2,344,155
Net income/(loss)		180,788	8,586	172,202
Other comprehensive income/(loss)	[1]	53,364	0	53,364
Comprehensive income/(loss)		234,152	8,586	225,566
Cash dividends declared:
Preferred stock ($4,650 per share for the nine months ended September 30, 2016 and 2015)		(4,650)	0	(4,650)
Common stock ($.21 and $.18 per share for the nine months ended September 30, 2016 and 2015, respectively)		(49,578)	0	(49,578)
Common stock repurchased	[2]	(96,801)	0	(96,801)
Common stock issued for:
Stock options and restricted stock-equity awards		18,710	0	18,710
Stock-based compensation expense		12,378	0	12,378
Dividends declared-noncontrolling interest of subsidiary preferred stock		(8,586)	(8,586)	0
Tax benefit/(benefit reversal)-stock based compensation expense		(629)	0	(629)
Balance, at Sep. 30, 2016		$ 2,744,582	$ 295,431	$ 2,449,151

[1] Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

[2] 2016 and 2015 include $93.5 million and $15.8 million, respectively, repurchased under share repurchase program

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Consolidated Condensed Statements Of Equity (Parenthetical)-Q - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015
Common stock - cash dividends declared per share		$ 0.21	$ 0.18
Common stock repurchased	[1]	$ 96,801	$ 20,052
Preferred Stock Dividends Per Share Declared		$ 4,650	$ 4,650
Stock Repurchase Authorization [Member]
Common stock repurchased		$ 93,500	$ 15,800

[1] 2016 and 2015 include $93.5 million and $15.8 million, respectively, repurchased under share repurchase program

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Consolidated Condensed Statements Of Cash Flow - USD ($)		9 Months Ended
		Sep. 30, 2016		Sep. 30, 2015
Operating Activities
Net income/(loss)		$ 180,788,000		$ 45,884,000
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities:
Provision for loan losses		11,000,000		8,000,000
Provision/(benefit) for deferred income taxes		68,100,000		19,002,000
Depreciation and amortization of premises and equipment		24,032,000		27,187,000
Amortization of intangible assets		3,898,000		3,894,000
Net other amortization and accretion		19,536,000		11,774,000
Net (increase)/decrease in derivatives		1,330,000		(5,854,000)
Repurchase and foreclosure provision		(31,618,000)		0
Fair value adjustment to foreclosed real estate		1,561,000		2,366,000
Litigation and regulatory matters		25,285,000		10,943,000
Stock-based compensation expense		12,378,000		9,952,000
(Tax benefit)/benefit reversal stock-based compensation expense		629,000		(456,000)
Equity securities (gains)/losses, net		181,000		61,000
Debt securities (gains)/losses, net		(1,654,000)		0
Gain on extinguishment of debt		0		(5,794,000)
Net (gains)/losses on sale/disposal of fixed assets		2,519,000		(2,461,000)
Loans held-for-sale:
Purchases		(73,404,000)		(3,080,000)
Gross proceeds from settlements and sales		43,653,000		20,387,000
(Gain)/loss due to fair value adjustments and other		878,000		(330,000)
Qualified pension plan contribution		(165,000,000)		0
Net (increase)/decrease in:
Trading securities		(441,205,000)		(36,200,000)
Fixed income receivables		(28,337,000)		(41,059,000)
Interest receivable		(2,014,000)		1,345,000
Other assets		(69,855,000)		(88,908,000)
Net increase/(decrease) in:
Trading liabilities		136,207,000		194,249,000
Fixed income payables		45,825,000		77,189,000
Interest payable		505,000		1,363,000
Other liabilities		(24,795,000)		(36,823,000)
Total adjustments		(440,365,000)		166,747,000
Net cash provided/(used) by operating activities		(259,577,000)		212,631,000
Available-for-sale securities:
Sales		1,543,000		284,000
Maturities		526,112,000		506,537,000
Purchases		(557,216,000)		(609,511,000)
Premises and equipment:
Sales		9,636,000		40,369,000
Purchases		(41,304,000)		(24,945,000)
Net (increase)/decrease in:
Loans		(1,874,562,000)	[1]	(517,622,000)
Interests retained from securitizations classified as trading securities		2,120,000		1,411,000
Interest-bearing cash		383,002,000		1,025,278,000
Net cash provided/(used) by investing activities		(1,550,669,000)		421,801,000
Common stock:
Stock options exercised		18,710,000		6,860,000
Cash dividends paid		(47,144,000)		(39,978,000)
Repurchase of shares	[2]	(96,801,000)		(20,052,000)
Tax benefit/(benefit reversal) stock-based compensation expense		(629,000)		456,000
Cash dividends paid - preferred stock - noncontrolling interest		(8,523,000)		(8,555,000)
Cash dividends paid - Series A preferred stock		(4,650,000)		(4,650,000)
Term borrowings:
Issuance		100,000		0
Payments/maturities		(264,599,000)		(519,545,000)
Net increase/(decrease) in:
Deposits		1,607,412,000		796,781,000
Short-term borrowings		732,858,000		(803,276,000)
Net cash provided/(used) by financing activities		1,936,734,000		(591,959,000)
Net increase/(decrease) in cash and cash equivalents		126,488,000		42,473,000
Cash and cash equivalents at beginning of period		1,031,063,000		1,071,405,000
Cash and cash equivalents at end of period		1,157,551,000		1,113,878,000
Supplemental Disclosures
Total interest paid		63,337,000		59,609,000
Total taxes paid		11,580,000		14,896,000
Total taxes refunded		3,854,000		7,012,000
Transfer from loans to other real estate owned		$ 7,291,000		$ 9,772,000

[1] 2016 includes $ 537.4 million UPB of loans acquired from GE Capital.

[2] 2016 and 2015 include $ 93. 5 million and $ 15.8 million, respectively, repurchased under share repurchase programs.

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Consolidated Condensed Statements Of Cash Flow (Parenthetical) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015
Shares repurchased under the share repurchase program, value	[1]	$ 96,801	$ 20,052
Stock Repurchase Authorization
Shares repurchased under the share repurchase program, value		$ 93,500	$ 15,800

[1] 2016 and 2015 include $ 93. 5 million and $ 15.8 million, respectively, repurchased under share repurchase programs.

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Financial Information

9 Months Ended

Sep. 30, 2016

Financial Information [Abstract]

Financial Information

Notes to the Consolidated Condensed Financial Statements (Unaudited)

Note 1 – Financial Information

Basis of Accounting. The unaudited interim consolidated condensed financial statements of First Horizon National Corporation (“FHN”), including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. In the opinion of management, all necessary adjustments have been made for a fair presentation of financial position and results of operations for the periods presented. These adjustments are of a normal recurring nature unless otherwise disclosed in this Quarterly Report on Form 10-Q. The operating results for the interim 2016 periods are not necessarily indicative of the results that may be expected going forward. For further information, refer to the audited consolidated financial statements in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

Summary of Accounting Changes.Effective January 1, 2016, FHN early adopted the provisions ofASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, on a prospective basis. ASU 2016-05 clarifies that a change in the counterparty of a derivative instrument that has been designated as the hedging instrument in an accounting hedge relationship does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. FHN considers the revised guidance to better reflect the nature of hedge accounting relationships by clarifying that, when considered solely, the counterparty is not a critical term in a hedge relationship. Because FHN has applied specific SEC staff guidance for novation (to facilitate central clearing requirements) of derivatives to prior and existing accounting hedge relationships, adoption of ASU 2016-05 had no effect on FHN.

Effective January 1, 2016, FHN early adopted the provisions of ASU 2016-06, “Contingent Put and Call Options in Debt Instruments”, which resolves diversity in practice for the bifurcation assessment when a contingent put or call option is embedded within a hybrid debt instrument. ASU 2016-06 clarifies that an entity is not required to assess whether the triggering event is related to interest rate or credit risks when performing the bifurcation analysis. FHN’s existing bifurcation assessment process conforms to the methodology outlined in ASU 2016-06.

Effective January 1, 2016, FHN adopted the provisions of ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition in determining expense recognition for the award. Thus, compensation cost is recognized over the requisite service period based on the probability of achievement of the performance condition. Expense is adjusted after the requisite service period for changes in the probability of achievement. The adoption of ASU 2014-12 had no effect on FHN.

Effective January 1, 2016, FHN adopted the provisions of ASU 2015-02, “Amendments to the Consolidation Analysis.” ASU 2015-02 revises current consolidation guidance to modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities. ASU 2015-02 also eliminates the presumption that a general partner should consolidate a limited partnership, revises the consolidation analysis for reporting entities that have fee arrangements and related party relationships with variable interest entities, and provides a scope exception for entities with interests in registered money market funds. FHN has evaluated the provisions of ASU 2015-02 on its consolidation assessments and there was not a significant effect upon adoption.

Effective January 1, 2016, FHN adopted the provisions of ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented as a direct reduction from the carrying value of that debt liability, consistent with debt discounts. ASU 2015-03 requires application on a retrospective basis, with prior periods revised to reflect the effects of adoption. Consistent with prior requirements, FHN previously classified debt issuance costs within Other assets in the Consolidated Condensed Statements of Condition. The adoption of ASU 2015-03 had no effect on FHN’s recognition of interest expense. The effects of the retrospective application of the change in presentation of debt issuance costs are summarized in the table below.

			As of September 30		As of December 31
(Dollars in thousands)			2015		2015		2014
Increase/(decrease) to previously reported Consolidated Statements of Condition amounts
	Other assets	$	(1,246)	$	(2,499)	$	(2,764)
	Term Borrowings		(1,246)		(2,499)		(2,764)

Accounting Changes Issued but Not Currently Effective

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial instruments. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer.In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance forlicensing arrangements.ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. The effective date of these ASUs has been deferred to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN is evaluating the effects of these ASUs on its revenue recognition practices.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such events or conditions exist, additional disclosures are required and management should evaluate whether its plans sufficiently alleviate the substantial doubt. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and all interim and annual periods thereafter. The provisions of ASU 2014-15 are not anticipated to affect FHN.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net income. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-01 on its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.ASU 2016-02 leaves lessor accounting largely unchanged from prior standards.For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset.For finance leases, interest on the lease liability is recognized separately from amortization of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term.For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements.ASU 2016-02 also requires expanded qualitative and quantitative disclosuresto assess the amount, timing, and uncertainty of cash flows arising from lease arrangements.ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid-stored value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds.ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account.ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.Early adoption is permitted.FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting.Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires will be recognized in income tax expense as discrete period items.Previously, these transactions were typically recorded directly within equity.Consistent with this change, excess tax benefits and deficiencies will no longer be included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share.Excess tax benefits will also be recognized at the time an award is exercised or vests compared to the current requirement to delay recognition until the deduction reduces taxes payable.The presentation of excess tax benefits in the statement of cash flows will shift to an operating activity from the current classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur rather than the current requirement to estimate forfeitures from inception.Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes onequity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award.Under current guidance, withholding of equity awards in excess of the minimum statutory requirement results in liability classification for the entire award.The related cash remittance by the employer for employee taxes will be treated as a financing activity in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Transition to the new guidance will be accomplished through a combination of retrospective, cumulative-effect adjustment to equity and prospective methodologies.FHN currently estimates that adoption of ASU 2016-09 will result in an increase in tax provision in 2017 between $1.0 million and $2.0 million. The effects on earnings per share calculations and elections to account for forfeitures as incurred are not anticipated to be significant.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected.This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination.ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value.However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”).For PCD assets, the initial allowance for credit losses is added to the purchase price.Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition.Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption.Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized.Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption will be recorded in earnings when received.A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses.Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than insignificant credit deterioration since origination.An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.Early adoption is permitted in fiscal years beginning after December 15, 2018.FHN is evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices.Since the CECL methodology encompasses a “life of loan” requirement for the recognition of credit losses, the estimated amount of such losses will be larger than the estimate of probable incurred losses under current standards.The extent of this difference will be dependent upon economic considerations and loan portfolio characteristics at the time of adoption.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists.ASU 2016-15 also provides an accounting policy election to classify cash flows from an equity method investee under the cumulative earnings approach or the nature of distribution approach.Finally, ASU 2016-15 provides guidance on the presentation of individual cash flows with characteristics of multiple classifications.ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.Early adoption is permitted.The provisions of ASU 2016-15 should be applied using a retrospective transition method to each period presented.FHN is evaluating the impact of ASU 2016-15 on its current cash flow presentation practices.

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Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2016

Acquisitions and Divestitures [Abstract]

Acquisitions and Divestitures

Note 2 – Acquisitions and Divestitures

On October 27, 2016, FTN Financial announced its plan to acquire Coastal Securities (“Coastal”), a national leader in the trading, securitization, and analysis of Small Business Administration (“SBA”) loans, for approximately $160 million in cash. Based in Houston, TX, Coastal also trades United States Department of Agriculture (“USDA”) loans and fixed income products and provides municipal underwriting and advisory services to its clients. Coastal’s government-guaranteed loan products, combined with FTN Financial’s existing SBA trading activities, will establish an additional major product sector for FTN Financial. The transaction, which is subject to regulatory approvals, the affirmative vote of Coastal Financial Holdings, Inc. (“CFH”) shareholders and other customary closing conditions, is expected to close in early 2017.

On September 16, 2016, FTBNA acquired $537.4 million in unpaid principal balance (“UPB”) of restaurant franchise loans from GE Capital’s Southeast and Southwest regional portfolios. Subsequent to the acquisition the acquired loans were combined with existing FTBNA relationships to establish a franchise finance specialty lending business.

On October 2, 2015, FHN completed its acquisition of TrustAtlantic Financial Corporation (“TrustAtlantic Financial” or “TAF”), and its wholly-owned bank subsidiary TrustAtlantic Bank (“TAB”), for an aggregate of 5,093,657 shares of FHN common stock and $23.9 million in cash in a transaction valued at $96.7 million. Prior to the acquisition TAB had five branches located in Raleigh, Cary and Greenville, North Carolina. In relation to the acquisition, FHN acquired approximately $400 million in assets, including approximately $282 million in loans, and assumed approximately $344 million of TAB deposits. FHN recorded $45.4 million in goodwill associated with the acquisition, representing the excess of acquisition consideration over the estimated fair value of net assets acquired.

See Note 2 – Acquisitions and Divestitures in the Notes to Consolidated Financial Statements on Form 10-K for the year ended December 31, 2015, for additional information about the TAF acquisition.

In addition to the transactions mentioned above, FHN acquires or divests assets from time to time in transactions that are considered business combination or divestitures but are not material to FHN individually or in the aggregate.

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Investment Securities

9 Months Ended

Sep. 30, 2016

Investment Securities [Abstract]

Investment Securities

Note 3 – Investment Securities

The following tables summarize FHN’s investment securities on September 30, 2016 and 2015:
	September 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued mortgage-backed securities ("MBS")		1,877,496		62,910		(49)		1,940,357
Government agency issued collateralized mortgage obligations ("CMO")		1,881,795		21,457		(2,108)		1,901,144
Equity and other (a)		185,992		1		-		185,993
Total securities available-for-sale (b)	$	3,945,383	$	84,368	$	(2,157)	$	4,027,594
Securities held-to-maturity:
States and municipalities	$	4,340	$	400	$	-	$	4,740
Corporate bonds		10,000		302		-		10,302
Total securities held-to-maturity	$	14,340	$	702	$	-	$	15,042

• Includes restricted investments in FHLB-Cincinnati stock of $87.9million and FRB stock of $68.6 million. The remainder is money market and cost method investments.
• Includes $3.3billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued MBS		914,878		31,773		(700)		945,951
Government agency issued CMO		2,514,362		30,281		(9,207)		2,535,436
Other U.S. government agencies		1,443		3		-		1,446
States and municipalities		9,155		-		-		9,155
Equity and other (a)		182,014		-		(461)		181,553
Total securities available-for-sale (b)	$	3,621,952	$	62,057	$	(10,368)	$	3,673,641
Securities held-to-maturity:
States and municipalities	$	4,313	$	1,091	$	-	$	5,404
Total securities held-to-maturity	$	4,313	$	1,091	$	-	$	5,404

• Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8million. The remainder is money market, mutual funds, and cost method investments.
• Includes $2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on September 30, 2016 are provided below:
		Held-to-Maturity				Available-for-Sale
		Amortized		Fair		Amortized		Fair
(Dollars in thousands)		Cost		Value		Cost		Value
Within 1 year		$	-	$	-	$	100	$	100
After 1 year; within 5 years			-		-		-		-
After 5 years; within 10 years			10,000		10,302		-		-
After 10 years			4,340		4,740		-		-
	Subtotal		14,340		15,042		100		100
Government agency issued MBS and CMO (a)			-		-		3,759,291		3,841,501
Equity and other			-		-		185,992		185,993
Total		$	14,340	$	15,042	$	3,945,383	$	4,027,594

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The table below provides information on gross gains and gross losses from available-for-sale investment securities for the three and nine months ended September 30:
	Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Gross gains on sales of securities	$	-	$	-	$	3,999	$	284
Gross (losses) on sales of securities		-		-		(2,326)		-
Net gain/(loss) on sales of securities (a)		-		-		1,673		284
Net OTTI recorded (b)		(200)		(345)		(200)		(345)
Total securities gain/(loss), net	$	(200)	$	(345)	$	1,473	$	(61)

• There were no sales proceeds for the three months ended September 30, 2016 and 2015; cash proceeds for the nine months ended September 30, 2016 and 2015 were $1.5 million and $.3 million, respectively. Nine months ended September 30, 2016 includes a $1.7million gain from an exchange of approximately $294 million of AFS debt securities.
• OTTI recorded is related to equity securities.

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2016 and 2015:
	As of September 30, 2016
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	320,282	$	(631)	$	142,060	$	(1,477)	$	462,342	$	(2,108)
Government agency issued MBS		38,477		(49)		-		-		38,477		(49)
Total temporarily impaired securities	$	358,759	$	(680)	$	142,060	$	(1,477)	$	500,819	$	(2,157)

	As of September 30, 2015
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	370,165	$	(1,487)	$	435,331	$	(7,720)	$	805,496	$	(9,207)
Government agency issued MBS		69,997		(242)		32,538		(458)		102,535		(700)
Total debt securities		440,162		(1,729)		467,869		(8,178)		908,031		(9,907)
Equity		-		-		630		(461)		630		(461)
Total temporarily impaired securities	$	440,162	$	(1,729)	$	468,499	$	(8,639)	$	908,661	$	(10,368)

FHN has reviewed investment securities that were in unrealized loss positions in accordance with its accounting policy for OTTI and does not consider them other-than-temporarily impaired. For debt securities with unrealized losses, FHN does not intend to sell them and it is more-likely-than-not that FHN will not be required to sell them prior to recovery. The decline in value is primarily attributable to changes in interest rates and not credit losses. For equity securities, FHN has both the ability and intent to hold these securities for the time necessary to recover the amortized cost.

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Loans

9 Months Ended

Sep. 30, 2016

Loans [Abstract]

Loans

Note 4 – Loans

The following table provides the balance of loans by portfolio segment as of September 30, 2016 and 2015, and December 31, 2015:
		September 30				December 31
(Dollars in thousands)		2016		2015		2015
Commercial:
	Commercial, financial, and industrial	$	12,118,298	$	9,610,295	$	10,436,390
	Commercial real estate		2,065,595		1,488,044		1,674,935
Consumer:
	Consumer real estate (a)		4,578,371		4,813,936		4,766,518
	Permanent mortgage		436,100		463,893		454,123
	Credit card & other		357,423		349,324		354,536
Loans, net of unearned income		$	19,555,787	$	16,725,492	$	17,686,502
Allowance for loan losses			201,557		210,814		210,242
Total net loans		$	19,354,230	$	16,514,678	$	17,476,260

Balances as of September 30, 2016 and 2015, and December 31, 2015, include $38.5 million, $59.3 million, and $52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

COMPONENTS OF THE LOAN PORTFOLIO

The loan portfolio is disaggregated into segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally determined based on the initial measurement attribute (i.e., amortized cost or purchased credit-impaired), risk characteristics of the loan, and FHN’s method for monitoring and assessing credit risk. Commercial loan portfolio segments include commercial, financial and industrial ("C&I") and commercial real estate("CRE"). Commercial classes within C&I include general C&I, loans to mortgage companies, the trust preferred loans ("TRUPS") (i.e. long-term unsecured loans to bank and insurance - related businesses) portfolio and purchased credit-impaired (“PCI”) loans. Loans to mortgage companies include commercial lines of credit to qualified mortgage companies primarily for the temporary warehousing of eligible mortgage loans prior to the borrower’s sale of those mortgage loans to third party investors. Commercial classes within CRE include income CRE, residential CRE and PCI loans. Consumer loan portfolio segments include consumer real estate, permanent mortgage, and the credit card and other portfolio. Consumer classes include home equity lines of credit (“HELOCs”), real estate ("R/E") installment and PCI loans within the consumer real estate segment, permanent mortgage (which is both a segment and a class), and credit card and other.

Concentrations

FHN has a concentration of residential real estate loans (26 percent of total loans), the majority of which is in the consumer real estate segment (23 percent of total loans). Loans to finance and insurance companies total $2.3 billion (19 percent of the C&I portfolio, or 12 percent of the total loans). FHN had loans to mortgage companies totaling $2.5 billion (20 percent of the C&I segment, or 13 percent of total loans) as of September 30, 2016. As a result, 39 percent of the C&I segment was sensitive to impacts on the financial services industry.

Acquisition

On September 16, 2016, FHN completed its acquisition of restaurant franchise loans from GE Capital. The acquisition included $537.4 million in unpaid principal balance of loans.

On October 2, 2015, FHN completed its acquisition of TAF, and its wholly-owned bank subsidiary TAB. The acquisition included $298.1 million in unpaid principal balance of loans with a fair value of $281.9 million.

Generally, the fair value for the acquired loans is estimated using a discounted cash flow analysis with significant unobservable inputs (Level 3) including adjustments for expected credit losses, prepayment speeds, current market rates for similar loans, and an adjustment for investor-required yield given product-type and various risk characteristics..

At each acquisition, FHN designated certain loans as PCI with the remaining loans accounted for under ASC 310-20, "Nonrefundable Fees and Other Costs." For loans accounted for under ASC 310-20, the difference between each loan’s book value and the estimated fair value at the time of the acquisition will be accreted into interest income over its remaining contractual life and the subsequent accounting and reporting will be similar to a loan in FHN's originated portfolio.

Purchased Credit-Impaired Loans
The following table reflects FHN's contractually required payment receivable, cash flows expected to be collected and the fair value of PCI loans at the acquisition date of September 16, 2016.
(Dollars in thousands)	September 16, 2016
Contractually required payments including interest	$	40,143
Less: nonaccretable difference		(1,030)
Cash flows expected to be collected		39,113
Less: accretable yield		(2,883)
Fair value of loans acquired	$	36,230

The following table presents a rollforward of the accretable yield for the three and nine months ended September 30, 2016 and 2015:
	Three Months Ended					Nine Months Ended
		September 30				September 30
(Dollars in thousands)		2016		2015		2016		2015
Balance, beginning of period	$	6,171	$	8,348	$	8,542	$	14,714
Additions		2,883		-		2,883		-
Accretion		(837)		(1,037)		(2,984)		(5,985)
Adjustment for payoffs		(179)		(835)		(4,408)		(2,931)
Adjustment for charge-offs		-		-		(674)		-
Increase in accretable yield (a)		686		500		5,398		1,178
Other		-		-		(33)		-
Balance, end of period	$	8,724	$	6,976	$	8,724	$	6,976

Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

At September 30, 2016, the ALLL related to PCI loans was $1.2 million compared to $2.9 million at September 30, 2015. A loan loss provision expense of $.3 million was recognized during the three months ended September 30, 2016, as compared to $.1 million recognized during the three months ended September 30, 2015. The PCI provision was not material for the nine months ended September 30, 2016, and was a provision credit of $.4 million for the nine months ended September 30, 2015.

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of September 30, 2016 and 2015, and December 31, 2015:
	September 30, 2016				September 30, 2015				December 31, 2015
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	46,189	$	47,882	$	4,767	$	5,353	$	16,063	$	18,573
Commercial real estate		8,661		11,340		17,998		21,138		19,929		25,504
Consumer real estate		1,233		1,733		1,968		2,636		3,672		4,533
Credit card and other		51		65		6		10		52		76
Total	$	56,134	$	61,020	$	24,739	$	29,137	$	39,716	$	48,686

Impaired Loans
The following tables provide information at September 30, 2016 and 2015, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and net LOCOM have been excluded.
		September 30, 2016							Three Months Ended				Nine Months Ended
									September 30, 2016				September 30, 2016
				Unpaid				Average		Interest		Average		Interest
		Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)		Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	13,127	$	20,666	$	-	$	13,708	$	-	$	12,088	$	-
	Income CRE		-		-		-		1,234		-		2,057		-
	Total	$	13,127	$	20,666	$	-	$	14,942	$	-	$	14,145	$	-
Consumer:
	HELOC (a)	$	11,359	$	24,541	$	-	$	11,273	$	-	$	11,100	$	-
	R/E installment loans (a)		4,084		5,094		-		4,158		-		4,333		-
	Permanent mortgage (a)		4,279		6,654		-		4,280		-		4,292		-
	Total	$	19,722	$	36,289	$	-	$	19,711	$	-	$	19,725	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	32,982	$	34,915	$	4,262	$	33,433	$	289	$	29,896	$	668
	TRUPS		3,242		3,700		925		3,258		-		3,291		-
	Income CRE		1,968		2,246		113		3,211		15		4,376		55
	Residential CRE		1,334		1,803		103		1,355		5		1,376		17
	Total	$	39,526	$	42,664	$	5,403	$	41,257	$	309	$	38,939	$	740
Consumer:
	HELOC	$	86,967	$	89,500	$	15,769	$	87,919	$	546	$	88,266	$	1,527
	R/E installment loans		56,499		57,686		13,692		57,775		357		58,890		1,019
	Permanent mortgage		89,792		102,355		14,611		90,697		544		92,716		1,602
	Credit card & other		340		340		139		348		4		353		10
	Total	$	233,598	$	249,881	$	44,211	$	236,739	$	1,451	$	240,225	$	4,158
Total commercial		$	52,653	$	63,330	$	5,403	$	56,199	$	309	$	53,084	$	740
Total consumer		$	253,320	$	286,170	$	44,211	$	256,450	$	1,451	$	259,950	$	4,158
Total impaired loans		$	305,973	$	349,500	$	49,614	$	312,649	$	1,760	$	313,034	$	4,898

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

		September 30, 2015							Three Months Ended				Nine Months Ended
									September 30, 2015				September 30, 2015
				Unpaid				Average		Interest		Average		Interest
		Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)		Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	5,586	$	7,266	$	-	$	8,994	$	-	$	11,202	$	-
	Income CRE		2,468		9,389		-		3,328		-		4,631		-
	Residential CRE		-		-		-		-		-		191		-
	Total	$	8,054	$	16,655	$	-	$	12,322	$	-	$	16,024	$	-
Consumer:
	HELOC (a)	$	11,000	$	28,486	$	-	$	11,788	$	-	$	12,455	$	-
	R/E installment loans (a)		4,404		5,756		-		4,682		-		4,696		-
	Permanent mortgage (a)		5,983		8,255		-		6,193		-		6,743		-
	Total	$	21,387	$	42,497	$	-	$	22,663	$	-	$	23,894	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	21,319	$	25,515	$	846	$	25,934	$	238	$	24,702	$	727
	TRUPS		13,369		13,700		5,310		13,384		-		13,414		-
	Income CRE		6,424		7,709		496		6,606		32		6,962		95
	Residential CRE		1,417		1,886		91		1,468		6		1,512		19
	Total	$	42,529	$	48,810	$	6,743	$	47,392	$	276	$	46,590	$	841
Consumer:
	HELOC	$	89,199	$	91,382	$	17,200	$	88,245	$	474	$	86,359	$	1,383
	R/E installment loans		65,465		66,431		16,718		66,367		352		68,274		1,010
	Permanent mortgage		99,071		111,683		15,696		99,913		613		102,341		1,841
	Credit card & other		380		380		168		399		3		453		11
	Total	$	254,115	$	269,876	$	49,782	$	254,924	$	1,442	$	257,427	$	4,245
Total commercial		$	50,583	$	65,465	$	6,743	$	59,714	$	276	$	62,614	$	841
Total consumer		$	275,502	$	312,373	$	49,782	$	277,587	$	1,442	$	281,321	$	4,245
Total impaired loans		$	326,085	$	377,838	$	56,525	$	337,301	$	1,718	$	343,935	$	5,086

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Asset Quality Indicators

FHN employs a dual grade commercial risk grading methodology to assign an estimate for theprobability of default ("PD") and the loss given default ("LGD") for each commercial loan using factors specific to various industry, portfolio, or product segments that result in a rank ordering of risk and the assignment of grades PD 1 to PD 16. Each PD grade corresponds to an estimated one-year default probability percentage; a PD 1 has the lowest expected default probability, and probabilities increase as grades progress down the scale. PD 1 through PD 12 are “pass” grades. PD grades 13-16 correspond to the regulatory-defined categories of special mention (13), substandard (14), doubtful (15), and loss (16). Pass loan grades are required to be reassessed annually or earlier whenever there has been a material change in the financial condition of the borrower or risk characteristics of the relationship. All commercial loans over $1 million and certain commercial loans over $500,000 that are graded 13 or worse are reassessed on a quarterly basis. LGD grades are assigned based on a scale of 1-12 and represent FHN’s expected recovery based on collateral type in the event a loan defaults. See Note 5 - Allowance for Loan Losses for further discussion on the credit grading system.

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of September 30, 2016 and 2015:
	September 30, 2016
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	475,708	$	-	$	-	$	1,109	$	-	$	476,817	3	%	$	85
2		689,620		-		-		11,586		91		701,297	5			332
3		445,832		645,764		-		133,661		-		1,225,257	9			298
4		924,003		409,470		-		230,460		-		1,563,933	11			1,001
5		1,148,228		286,413		-		299,750		561		1,734,952	12			6,330
6		1,417,978		762,294		-		297,287		13,145		2,490,704	18			10,367
7		1,431,070		209,511		-		479,531		3,286		2,123,398	15			13,302
8		995,678		93,661		-		321,942		4,174		1,415,455	10			23,930
9		634,142		32,537		-		105,274		4,079		776,032	5			14,419
10		367,947		40,099		-		57,528		12,708		478,282	3			8,401
11		218,754		-		-		24,245		4,532		247,531	2			6,229
12		118,425		-		-		12,678		6,701		137,804	1			4,290
13		216,314		-		304,527		8,990		135		529,966	4			7,262
14,15,16		154,412		70		-		18,207		1,441		174,130	1			16,804
Collectively evaluated for impairment		9,238,111		2,479,819		304,527		2,002,248		50,853		14,075,558	99			113,050
Individually evaluated for impairment		46,109		-		3,242		1,968		1,334		52,653	-			5,403
Purchased credit-impaired loans		46,490		-		-		8,758		434		55,682	1			833
Total commercial loans	$	9,330,710	$	2,479,819	$	307,769	$	2,012,974	$	52,621	$	14,183,893	100	%	$	119,286

	September 30, 2015
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	529,836	$	-	$	-	$	707	$	-	$	530,543	5	%	$	127
2		590,614		-		-		10,835		126		601,575	5			322
3		453,831		327,776		-		90,588		-		872,195	8			311
4		822,515		315,061		-		110,165		302		1,248,043	11			949
5		1,190,085		239,391		-		234,729		7,015		1,671,220	15			6,901
6		1,201,553		350,401		-		347,740		2,793		1,902,487	17			10,630
7		1,278,443		98,262		-		354,457		4,670		1,735,832	16			13,891
8		747,760		18,189		-		150,375		561		916,885	8			13,953
9		377,998		26,240		-		42,995		2,212		449,445	4			8,310
10		188,711		-		-		30,515		89		219,315	2			4,635
11		186,974		-		-		28,004		747		215,725	2			5,861
12		80,836		-		-		9,095		516		90,447	1			2,975
13		112,423		-		305,382		3,600		260		421,665	4			4,256
14,15,16		123,345		-		-		23,195		1,277		147,817	1			14,533
Collectively evaluated for impairment		7,884,924		1,375,320		305,382		1,437,000		20,568		11,023,194	99			87,654
Individually evaluated for impairment		26,904		-		12,755		8,892		1,417		49,968	1			6,743
Purchased credit-impaired loans		5,010		-		-		18,533		1,634		25,177	-			2,414
Total commercial loans	$	7,916,838	$	1,375,320	$	318,137	$	1,464,425	$	23,619	$	11,098,339	100	%	$	96,811

Balances as of September 30, 2016 and 2015, presented net of $25.5 million and $26.2 million, respectively, in lower of cost or market (“LOCOM”) valuation adjustment. Based on the underlying structure of the notes, the highest possible internal grade is "13".

The consumer portfolio is comprised primarily of smaller-balance loans which are very similar in nature in that most are standard products and are backed by residential real estate. Because of the similarities of consumer loan-types, FHN is able to utilize the Fair Isaac Corporation (“FICO”) score, among other attributes, to assess the credit quality of consumer borrowers. FICO scores are refreshed on a quarterly basis in an attempt to reflect the recent risk profile of the borrowers. Accruing delinquency amounts are indicators of asset quality within the credit card and other consumer portfolio.

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of September 30, 2016 and 2015:
	September 30, 2016			September 30, 2015
	HELOC	R/E Installment Loans	Permanent Mortgage	HELOC	R/E Installment Loans	Permanent Mortgage
FICO score greater than or equal to 740	56.3%	68.7%	43.6%	55.4%	67.6%	43.1%
FICO score 720-739	8.9	9.1	9.5	8.8	8.1	9.2
FICO score 700-719	8.8	7.1	11.9	9.2	7.9	10.0
FICO score 660-699	13.2	8.8	16.5	12.9	8.8	16.8
FICO score 620-659	5.9	3.4	8.7	6.5	4.1	8.4
FICO score less than 620 (a)	6.9	2.9	9.8	7.2	3.5	12.5
Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

For this group, a majority of the FICO scores at the time of the origination exceeded 620 but have since deteriorated as the loans have seasoned

Nonaccrual and Past Due Loans

The following table reflects accruing and non-accruing loans by class on September 30, 2016:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,253,922	$	3,570	$	96	$	9,257,588	$	9,897	$	2,440	$	14,295	$	26,632	$	9,284,220
Loans to mortgage companies		2,478,708		1,041		-		2,479,749		-		-		70		70		2,479,819
TRUPS (a)		304,527		-		-		304,527		-		-		3,242		3,242		307,769
Purchased credit-impaired loans		45,311		711		468		46,490		-		-		-		-		46,490
Total commercial (C&I)		12,082,468		5,322		564		12,088,354		9,897		2,440		17,607		29,944		12,118,298
Commercial real estate:
Income CRE		2,000,553		1,071		-		2,001,624		113		468		2,011		2,592		2,004,216
Residential CRE		50,221		1,141		-		51,362		-		-		825		825		52,187
Purchased credit-impaired loans		7,697		390		1,105		9,192		-		-		-		-		9,192
Total commercial real estate		2,058,471		2,602		1,105		2,062,178		113		468		2,836		3,417		2,065,595
Consumer real estate:
HELOC		1,693,312		16,054		10,031		1,719,397		50,377		4,101		10,126		64,604		1,784,001
R/E installment loans		2,754,910		9,932		3,129		2,767,971		19,251		2,319		3,263		24,833		2,792,804
Purchased credit-impaired loans		1,315		-		251		1,566		-		-		-		-		1,566
Total consumer real estate		4,449,537		25,986		13,411		4,488,934		69,628		6,420		13,389		89,437		4,578,371
Permanent mortgage		396,285		4,331		6,380		406,996		11,113		3,867		14,124		29,104		436,100
Credit card & other:
Credit card		186,482		1,464		1,230		189,176		-		-		-		-		189,176
Other		167,015		843		190		168,048		-		-		148		148		168,196
Purchased credit-impaired loans		51		-		-		51		-		-		-		-		51
Total credit card & other		353,548		2,307		1,420		357,275		-		-		148		148		357,423
Total loans, net of unearned income	$	19,340,309	$	40,548	$	22,880	$	19,403,737	$	$90,751	$	13,195	$	$48,104	$	$152,050	$	$19,555,787

Total TRUPS includes LOCOM valuation adjustment of $25.5 million.

The following table reflects accruing and non-accruing loans by class on September 30, 2015:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	7,888,633	$	6,095	$	349	$	7,895,077	$	5,359	$	1,553	$	9,839	$	16,751	$	7,911,828
Loans to mortgage companies		1,373,103		2,102		-		1,375,205		-		-		115		115		1,375,320
TRUPS (a)		305,382		-		-		305,382		-		-		12,755		12,755		318,137
Purchased credit-impaired loans		4,705		-		305		5,010		-		-		-		-		5,010
Total commercial (C&I)		9,571,823		8,197		654		9,580,674		5,359		1,553		22,709		29,621		9,610,295
Commercial real estate:
Income CRE		1,435,395		2,394		-		1,437,789		914		-		7,189		8,103		1,445,892
Residential CRE		21,905		80		-		21,985		-		-		-		-		21,985
Purchased credit-impaired loans		16,172		3,845		150		20,167		-		-		-		-		20,167
Total commercial real estate		1,473,472		6,319		150		1,479,941		914		-		7,189		8,103		1,488,044
Consumer real estate:
HELOC		2,056,044		19,459		10,146		2,085,649		63,667		5,150		9,126		77,943		2,163,592
R/E installment loans		2,599,513		11,423		3,211		2,614,147		26,293		2,174		5,258		33,725		2,647,872
Purchased credit-impaired loans		2,383		-		89		2,472		-		-		-		-		2,472
Total consumer real estate		4,657,940		30,882		13,446		4,702,268		89,960		7,324		14,384		111,668		4,813,936
Permanent mortgage		420,727		4,051		5,270		430,048		14,044		3,228		16,573		33,845		463,893
Credit card & other:
Credit card		187,770		2,049		1,171		190,990		-		-		-		-		190,990
Other		156,664		718		202		157,584		-		-		743		743		158,327
Purchased credit-impaired loans		7		-		-		7		-		-		-		-		7
Total credit card & other		344,441		2,767		1,373		348,581		-		-		743		743		349,324
Total loans, net of unearned income	$	16,468,403	$	52,216	$	20,893	$	16,541,512	$	110,277	$	12,105	$	61,598	$	183,980	$	16,725,492

Total TRUPS includes LOCOM valuation adjustment of $26.2 million.

Troubled Debt Restructurings

As part of FHN’s ongoing risk management practices, FHN attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately.

A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that FHN has granted a concession to the borrower. FHN may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions could include extension of the maturity date, reductions of the interest rate (which may make the rate lower than current market for a new loan with similar risk), reduction or forgiveness of accrued interest, or principal forgiveness. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR.

For all classes within the commercial portfolio segment, TDRs are typically modified through forbearance agreements (generally 6 to 12 months). Forbearance agreements could include reduced interest rates, reduced payments, release of guarantor, or entering into short sale agreements. FHN’s proprietary modification programs for consumer loans are generally structured using parameters of U.S. government-sponsored programs such as Home Affordable Modification Program (“HAMP”). Within the HELOC and R/E installment loans classes of the consumer portfolio segment, TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 1 percent for up to 5 years) and a possible maturity date extension to reach an affordable housing debt ratio. After 5 years, the interest rate generally returns to the original interest rate prior to modification; for certain modifications, the modified interest rate increases 2 percent per year until the original interest rate prior to modification is achieved. Permanent mortgage TDRs are typically modified by reducing the interest rate (in increments of 25 basis points to a minimum of 2 percent forup to 5 years) and a possible maturity date extension to reach an affordable housing debt ratio. After 5 years, the interest rate steps up 1 percent every year until it reaches the Federal Home Loan Mortgage Corporation Weekly Survey Rate cap. Contractual maturities may be extended to 40 years on permanent mortgages and to 30 years for consumer real estate loans. Within the credit card class of the consumer portfolio segment, TDRs are typically modified through either a short-term credit card hardship program or a longer-term credit card workout program. In the credit card hardship program, borrowers may be granted rate and payment reductions for 6 months to 1 year. In the credit card workout program, customers are granted a rate reduction to 0 percent and term extensions for up to 5 years to pay off the remaining balance.

Despite the absence of a loan modification, the discharge of personal liability through bankruptcy proceedings is considered a concession. As a result, FHN classifies all non-reaffirmed residential real estate loans discharged in Chapter 7 bankruptcy as nonaccruing TDRs.

On September 30, 2016 and 2015, FHN had $289.6 million and $304.7 million portfolio loans classified as TDRs, respectively. For TDRs in the loan portfolio, FHN had loan loss reserves of $48.7 million and $51.2 million, or 17 percent as of September 30, 2016 and 2015. Additionally, $71.2 million and $72.6 million of loans held-for-sale as of September 30, 2016 and 2015, respectively, were classified as TDRs.

The following tables reflect portfolio loans that were classified as TDRs during the three and nine months ended September 30, 2016 and 2015:
		Three Months Ended September 30, 2016					Nine Months Ended September 30, 2016
			Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
			Outstanding		Outstanding			Outstanding		Outstanding
(Dollars in thousands)		Number	Recorded Investment		Recorded Investment		Number	Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		2	$	419	$	419	7	$	20,302	$	19,194
	Total commercial (C&I)	2		419		419	7		20,302		19,194
Commercial real estate:
Income CRE		1		100		99	1		100		99
	Total commercial real estate	1		100		99	1		100		99
Consumer real estate:
HELOC		48		5,720		5,573	200		18,418		18,189
R/E installment loans		10		345		337	44		4,569		4,846
	Total consumer real estate	58		6,065		5,910	244		22,987		23,035
Permanent mortgage		2		710		704	6		1,551		1,544
Credit card & other		10		45		44	15		66		64
Total troubled debt restructurings		73	$	7,339	$	7,176	273	$	45,006	$	43,936

		Three Months Ended September 30, 2015					Nine Months Ended September 30, 2015
			Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
			Outstanding		Outstanding			Outstanding		Outstanding
(Dollars in thousands)		Number	Recorded Investment		Recorded Investment		Number	Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		-	$	-	$	-	2	$	1,388	$	1,325
	Total commercial (C&I)	-		-		-	2		1,388		1,325
Commercial real estate:
Income CRE		-		-		-	-		-		-
	Total commercial real estate	-		-		-	-		-		-
Consumer real estate:
HELOC		56		6,918		6,820	158		17,882		17,674
R/E installment loans		20		988		974	58		4,254		4,267
	Total consumer real estate	76		7,906		7,794	216		22,136		21,941
Permanent mortgage		-		-		-	6		2,039		2,054
Credit card & other		3		11		10	15		59		56
Total troubled debt restructurings		79	$	7,917	$	7,804	239	$	25,622	$	25,376

The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2016 and 2015, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
		Three Months Ended			Nine Months Ended
		September 30, 2016			September 30, 2016
			Recorded			Recorded
(Dollars in thousands)		Number	Investment		Number	Investment
Commercial real estate:
Residential CRE		-	$	-	-	$	-
	Total commercial real estate	-		-	-		-
Consumer real estate:
HELOC		-		-	2		138
R/E installment loans		-		-	1		180
	Total consumer real estate	-		-	3		318
Credit card & other		-		-	-		-
Total troubled debt restructurings		-	$	-	3	$	318

		Three Months Ended			Nine Months Ended
		September 30, 2015			September 30, 2015
			Recorded			Recorded
(Dollars in thousands)		Number	Investment		Number	Investment
Commercial real estate:
Residential CRE		-	$	-	1	$	896
	Total commercial real estate	-		-	1		896
Consumer real estate:
HELOC		-		-	7		308
R/E installment loans		2		50	4		162
	Total consumer real estate	2		50	11		470
Credit card & other		1		2	4		10
Total troubled debt restructurings		3	$	52	16	$	1,376

XML

Allowance

9 Months Ended

Sep. 30, 2016

Loans And Leases Receivable Allowance [Abstract]

Allowance

Note 5 - Allowance for Loan Losses

The ALLLincludes the following components: reserves for commercial loans evaluated based on pools of credit graded loans and reserves for pools of smaller-balance homogeneous consumer loans, both determined in accordance with ASC 450-20-50. The reserve factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics and are subject to qualitative adjustments by management to reflect current events, trends, and conditions (including economic considerations and trends). The pace of the economic recovery, performance of the housing market, unemployment levels, labor participation rate, regulatory guidance, and both positive and negative portfolio segment-specific trends, are examples of additional factors considered by management in determining the ALLL. Additionally, management considers the inherent uncertainty of quantitative models that are driven by historical loss data. Management evaluates the periods of historical losses that are the basis for the loss rates used in the quantitative models and selects historical loss periods that are believed to be the most reflective of losses inherent in the loan portfolio as of the balance sheet date. Management also periodically reviews analysis of the loss emergence period which is the amount of time it takes for a loss to be confirmed (initial charge-off) after a loss event has occurred. FHN performs extensive studies as it relates to the historical loss periods used in the model and the loss emergence period and model assumptions are adjusted accordingly. The ALLL also includes reserves determined in accordance with ASC 310-10-35 for loans determined by management to be individually impaired and an allowance associated with PCI loans. See Note 1 – Summary of Significant Accounting Policies and Note – 5 Allowance for Loan Losses in the Notes to Consolidated Financial Statements on Form 10-K for the year ended December 31, 2015, for additional information about the policies and methodologies used in the aforementioned components of the ALLL.

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2016 and 2015:
				Commercial		Consumer		Permanent		Credit Card
(Dollars in thousands)		C&I		Real Estate		Real Estate		Mortgage		and Other		Total
Balance as of July 1, 2016		$	80,972	$	30,264	$	59,081	$	17,600	$	11,890	$	199,807
Charge-offs			(1,992)		(49)		(4,359)		(373)		(3,589)		(10,362)
Recoveries			725		651		5,591		239		906		8,112
Provision/(provision credit) for loan losses			7,161		1,554		(7,078)		(877)		3,240		4,000
Balance as of September 30, 2016			86,866		32,420		53,235		16,589		12,447		201,557
Balance as of January 1, 2016		$	73,637	$	25,159	$	80,614	$	18,947	$	11,885	$	210,242
Charge-offs			(16,386)		(742)		(17,867)		(834)		(10,441)		(46,270)
Recoveries			3,107		1,782		17,408		1,502		2,786		26,585
Provision/(provision credit) for loan losses			26,508		6,221		(26,920)		(3,026)		8,217		11,000
Balance as of September 30, 2016			86,866		32,420		53,235		16,589		12,447		201,557
Allowance - individually evaluated for impairment			5,187		216		29,461		14,611		139		49,614
Allowance - collectively evaluated for impairment			81,376		31,674		23,441		1,978		12,308		150,777
Allowance - purchased credit-impaired loans			303		530		333		-		-		1,166
Loans, net of unearned as of September 30, 2016:
	Individually evaluated for impairment		49,351		3,302		158,909		94,071		340		305,973
	Collectively evaluated for impairment		12,022,457		2,053,101		4,417,896		342,029		357,032		19,192,515
	Purchased credit-impaired loans		46,490		9,192		1,566		-		51		57,299
Total loans, net of unearned income		$	12,118,298	$	2,065,595	$	4,578,371	$	436,100	$	357,423	$	19,555,787
Balance as of July 1, 2015		$	78,750	$	21,492	$	85,457	$	22,377	$	13,275	$	221,351
Charge-offs			(8,632)		(533)		(7,994)		(1,038)		(3,612)		(21,809)
Recoveries			2,264		868		5,785		229		1,126		10,272
Provision/(provision credit) for loan losses			(919)		3,521		(776)		(1,492)		666		1,000
Balance as of September 30, 2015			71,463		25,348		82,472		20,076		11,455		210,814
Balance as of January 1, 2015		$	67,011	$	18,574	$	113,011	$	19,122	$	14,730	$	232,448
Charge-offs			(17,163)		(2,208)		(23,434)		(3,031)		(13,406)		(59,242)
Recoveries			5,143		1,712		18,360		1,518		2,875		29,608
Provision/(provision credit) for loan losses			16,472		7,270		(25,465)		2,467		7,256		8,000
Balance as of September 30, 2015			71,463		25,348		82,472		20,076		11,455		210,814
Allowance - individually evaluated for impairment			6,156		587		33,918		15,696		168		56,525
Allowance - collectively evaluated for impairment			65,063		22,591		48,050		4,380		11,286		151,370
Allowance - purchased credit-impaired loans			244		2,170		504		-		1		2,919
Loans, net of unearned as of September 30, 2015:
	Individually evaluated for impairment		39,659		10,309		170,068		105,054		380		325,470
	Collectively evaluated for impairment		9,565,626		1,457,568		4,641,396		358,839		348,937		16,372,366
	Purchased credit-impaired loans		5,010		20,167		2,472		-		7		27,656
Total loans, net of unearned income		$	9,610,295	$	1,488,044	$	4,813,936	$	463,893	$	349,324	$	16,725,492

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Intangible Assets

9 Months Ended

Sep. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 6 – Intangible Assets

The following is a summary of goodwill and other intangible assets, net of accumulated amortization, included in the Consolidated Condensed Statements of Condition:
			Other
			Intangible
(Dollars in thousands)	Goodwill		Assets (a)
December 31, 2014	$	145,932	$	29,518
Amortization expense		-		(3,894)
September 30, 2015	$	145,932	$	25,624
December 31, 2015 (b)	$	191,307	$	26,215
Amortization expense		-		(3,898)
Additions		64		-
September 30, 2016	$	191,371	$	22,317

• Represents customer lists, acquired contracts, core deposit intangibles, and covenants not to compete.
• The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

The gross carrying amount and accumulated amortization of other intangible assets subject to amortization is $72.3 million and $50.0 million, respectively on September 30, 2016. Estimated aggregate amortization expense is expected to be $1.3 million for the remainder of 2016, and $4.9 million, $4.7 million, $4.5 million, $1.7 million, and $1.6 million for the twelve-month periods of 2017, 2018, 2019, 2020, and 2021, respectively.

Gross goodwill, accumulated impairments, and accumulated divestiture related write-offs were determined beginning January 1, 2012, when a change in accounting requirements resulted in goodwill being assessed for impairment rather than being amortized. Gross goodwill of $200.0 million with accumulated impairments and accumulated divestiture related write-offs of $114.1 million and $85.9 million, respectively, were previously allocated to the non-strategic segment, resulting in $0 net goodwill allocated to the non-strategic segment as of September 30, 2015 and 2016. The regional bank and fixed income segments do not have any accumulated impairments or divestiture related write-offs. The following is a summary of goodwill by reportable segment included in the Consolidated Condensed Statements of Condition as of and for the nine months ended September 30, 2015 and 2016.

			Regional		Fixed
(Dollars in thousands)			Banking		Income		Total
December 31, 2014			$	47,928	$	98,004	$	145,932
		Additions		-		-		-
		Impairments		-		-		-
		Divestitures		-		-		-
September 30, 2015			$	47,928	$	98,004	$	145,932
December 31, 2015 (a)			$	93,303	$	98,004	$	191,307
		Additions		64		-		64
		Impairments		-		-		-
		Divestitures		-		-		-
September 30, 2016			$	93,367	$	98,004	$	191,371
(a)	The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

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Other Income And Other Expense

9 Months Ended

Sep. 30, 2016

Other Income And Other Expense [Abstract]

Other Income And Other Expense

Note 7 – Other Income and Other Expense

Following is detail of All other income and commissions and All other expense as presented in the Consolidated Condensed Statements of Income:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
All other income and commissions:
Mortgage banking	$	5,524	$	761	$	7,395	$	2,721
ATM interchange fees		3,081		2,998		8,918		8,784
Electronic banking fees		1,398		1,479		4,176		4,366
Deferred compensation (a)		1,038		(2,309)		2,162		(1,311)
Letter of credit fees		981		978		3,157		3,633
Gain on extinguishment of debt		-		5,794		-		5,794
Other		5,518		3,550		10,594		13,096
Total	$	17,540	$	13,251	$	36,402	$	37,083
All other expense:
Travel and entertainment	$	2,478	$	2,451	$	7,035	$	6,697
Customer relations		1,442		1,477		4,804		4,296
Employee training and dues		1,360		1,272		4,088		3,853
Supplies		1,158		974		3,114		2,781
Tax credit investments		788		439		2,325		1,383
Miscellaneous loan costs		676		726		1,958		1,821
Litigation and regulatory matters		260		10,922		25,785		173,422
Other		8,326		8,835		30,669		26,565
Total	$	16,488	$	27,096	$	79,778	$	220,818
Certain previously reported amounts have been reclassified to agree with current presentation.
(a) Deferred compensation market value adjustments are mirrored by adjustments to employee compensation, incentives, and benefits expense.

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Components of Other Comprehensive Income/(Loss)

9 Months Ended

Sep. 30, 2016

Disclosure Text Block [Abstract]

Components of Other Comprehensive Income/(Loss) [Text Block]

Note 8 – Components of Other Comprehensive Income/(loss)

The following table provides the changes in accumulated other comprehensive income/(loss) by component, net of tax, for the three and nine months ended September 30, 2016 and 2015:
(Dollars in thousands)			SecuritiesAFS	Cash FlowHedges		Pension and Post-retirement Plans		Total
Balance as of July 1, 2016		$	58,591	$	4,691	$	(215,616)	$	(152,334)
	Net unrealized gains/(losses)		(7,887)		(1,211)		-		(9,098)
	Amounts reclassified from AOCI		-		(359)		963		604
	Other comprehensive income/(loss)		(7,887)		(1,570)		963		(8,494)
Balance as of September 30, 2016		$	50,704	$	3,121	$	(214,653)	$	(160,828)
Balance as of January 1, 2016		$	3,394	$	-	$	(217,586)	$	(214,192)
	Net unrealized gains/(losses)		48,330		4,228		-		52,558
	Amounts reclassified from AOCI		(1,020)		(1,107)		2,933		806
	Other comprehensive income/(loss)		47,310		3,121		2,933		53,364
Balance as of September 30, 2016		$	50,704	$	3,121	$	(214,653)	$	(160,828)
(Dollars in thousands)
Balance as of July 1, 2015		$	16,485	$	-	$	(204,733)	$	(188,248)
	Net unrealized gains/(losses)		15,427		-		-		15,427
	Amounts reclassified from AOCI		-		-		(3,855)		(3,855)
	Other comprehensive income/(loss)		15,427		-		(3,855)		11,572
Balance as of September 30, 2015		$	31,912	$	-	$	(208,588)	$	(176,676)
Balance as of January 1, 2015		$	18,581	$	-	$	(206,827)	$	(188,246)
	Net unrealized gains/(losses)		13,331		-		-		13,331
	Amounts reclassified from AOCI		-		-		(1,761)		(1,761)
	Other comprehensive income/(loss)		13,331		-		(1,761)		11,570
Balance as of September 30, 2015		$	31,912	$	-	$	(208,588)	$	(176,676)

Reclassifications from AOCI, and related tax effects, were as follows:
(Dollars in thousands)		Three Months Ended September 30				Nine Months EndedSeptember 30
Details about AOCI		2016		2015		2016		2015		Affected line item in the statement where net income is presented
Securities AFS:
	Realized (gains)/losses on securities AFS	$	-	$	-	$	(1,654)	$	-	Debt securities gains/(losses), net
	Tax expense/(benefit)		-		-		634		-	Provision/(benefit) for income taxes
			-		-		(1,020)		-
Cash flow hedges:
	Realized (gains)/losses on cash flow hedges		(582)		-		(1,795)		-	Interest and fees on loans
	Tax expense/(benefit)		223		-		688		-	Provision/(benefit) for income taxes
			(359)		-		(1,107)		-
Pension and Postretirement Plans:
	Amortization of prior service cost, transition asset/obligation, and net actuarial gain/(loss)		1,561		(6,266)		4,756		(2,854)	Employee compensation, incentives, and benefits
	Tax expense/(benefit)		(598)		2,411		(1,823)		1,093	Provision/(benefit) for income taxes
			963		(3,855)		2,933		(1,761)
Total reclassification from AOCI		$	604	$	(3,855)	$	806	$	(1,761)

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Earnings Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 9 – Earnings Per Share

The following table provides reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars and shares in thousands, except per share data)	2016		2015		2016		2015
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Net income attributable to noncontrolling interest		2,883		2,977		8,586		8,586
Net income/(loss) attributable to controlling interest		64,752		60,355		172,202		37,298
Preferred stock dividends		1,550		1,550		4,650		4,650
Net income/(loss) available to common shareholders	$	63,202	$	58,805	$	167,552	$	32,648
Weighted average common shares outstanding - basic		231,856		233,111		232,690		232,910
Effect of dilutive securities		2,236		1,947		2,085		1,928
Weighted average common shares outstanding - diluted		234,092		235,058		234,775		234,838
Net income/(loss) per share available to common shareholders	$	0.27	$	0.25	$	0.72	$	0.14
Diluted income/(loss) per share available to common shareholders	$	0.27	$	0.25	$	0.71	$	0.14

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Shares in thousands)	2016		2015		2016		2015
Anti-dilutive stock options		2,793		3,569		2,996		3,559
Weighted average exercise price of anti-dilutive stock options	$	24.95	$	24.22	$	25.21	$	24.46
Anti-dilutive other equity awards		371		124		51		58

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Contingencies And Other Disclosures

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure Abstract

Contingencies And Other Disclosures

Note 10 – Contingencies and Other Disclosures

CONTINGENCIES

Contingent Liabilities Overview

Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHN’s current or former lines of business. Certain matters of that sort are pending at this time, and FHN is cooperating in those matters. Pending and threatened litigation matters sometimes are resolved in court or before an arbitrator, and sometimes are settled by the parties. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the ultimate resolution of these matters may be, or what the eventual loss or impact related to each matter may be. FHN establishes a loss contingency liability for a litigation matter when loss is both probable and reasonably estimable as prescribed by applicable financial accounting guidance. If loss for a matter is probable and a range of possible loss outcomes is the best estimate available, accounting guidance requires a liability to be established at the low end of the range.

Based on current knowledge, and after consultation with counsel, management is of the opinion that loss contingencies related to threatened or pending litigation matters should not have a material adverse effect on the consolidated financial condition of FHN, but may be material to FHN’s operating results for any particular reporting period depending, in part, on the results from that period.

Material Loss Contingency Matters

As used in this Note, "material loss contingency matters" generally fall into at least one of the following categories: (i) FHN has determined material loss to be probable and has established a material loss liability in accordance with applicable financial accounting guidance, other than matters reported as having been substantially settled or otherwise substantially resolved; (ii) FHN has determined material loss to be probable but is not reasonably able to estimate an amount or range of material loss liability; or (iii) FHN has determined that material loss is not probable but is reasonably possible, and that the amount or range of that reasonably possible material loss is estimable. As defined in applicable accounting guidance, loss is reasonably possible if there is more than a remote chance of a material loss outcome for FHN. Set forth below are disclosures for certain pending or threatened litigation matters, including all matters mentioned in (i) or (ii) and certain matters mentioned in (iii). In addition, certain other matters, or groups of matters, are discussed relating to FHN's former mortgage origination and servicing businesses. In all litigation matters discussed, unless settled or otherwise resolved, FHN believes it has meritorious defenses and intends to pursue those defenses vigorously.

FHN reassesses the liability for litigation matters each quarter as the matters progress. At September 30, 2016, the aggregate amount of liabilities established for all such loss contingency matters was $39.9 million. These liabilities are separate from those discussed under the heading "Repurchase and Foreclosure Liability" below.

In each material loss contingency matter, except as otherwise noted, there is more than a remote chance that any of the following outcomes will occur: the plaintiff will substantially prevail; the defense will substantially prevail; the plaintiff will prevail in part; or the matter will be settled by the parties. At September 30, 2016, FHN estimates that for all material loss contingency matters, estimable reasonably possible losses in future periods in excess of currently established liabilities could aggregate in a range from zero to approximately $70million.

As a result of the general uncertainties discussed above and the specific uncertainties discussed for each matter mentioned below, it is possible that the ultimate future loss experienced by FHN for any particular matter may materially exceed the amount, if any, of currently established liability for that matter. That possibility exists both for matters included in the estimated reasonably possible loss (“RPL”) range mentioned above and for matters not included in that range.

Certain Matters Included in RPL Range

RPL-Included FH Proprietary Securitization Matters. FHN, along with multiple co-defendants, is defending lawsuits brought by investors which claim that the offering documents under which certificates relating to First Horizon branded securitizations were sold to them were materially deficient. For two of those matters, FHN can estimate reasonably possible loss in excess of established liabilities: (1) Federal Deposit Insurance Corporation ("FDIC") as receiver for Colonial Bank, in the U.S. District Court for the Middle District of Alabama (Case No. CV-12-791-WKW-WC); and (2) FDIC as receiver for Colonial Bank, in the U.S. District Court for the Southern District of New York (Case No. 12 Civ. 6166 (LLS)(MHD)). The plaintiff in those suits claims to have purchased (and later sold) certificates in a number of separate securitizations and demands damages and prejudgment interest, among several remedies sought. The RPL estimates for these matters are subject to significant uncertainties regarding: the dollar amounts claimed; the potential remedies that might be available or awarded; the outcome of any settlement discussions; the ultimate outcome of potentially significant motions; the availability of significantly dispositive defenses; and the incomplete status of the discovery process. FDIC’s claims relate to alleged purchases totaling $145.7million. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Material Matter Excluded from RPL Range due to Proposed Settlement

Debit Transaction Sequencing Litigation Matter. FTBNA is a defendant in a putative class action lawsuit concerning overdraft fees charged in connection with debit card transactions. A key claim is that the method used to order or sequence the transactions posted each day was improper. The case is styled as Hawkins v. First Tennessee Bank National Association,before the Circuit Court for Shelby County, Tennessee, Case No. CT-004085-11. In July 2016 FHN and the plaintiff submitted a notice of proposed settlement to the court, which later received preliminary approval by the court. The proposed settlement remains subject to an extended approval process which FHN estimates will be completed in the first half of 2017. The material loss contingency liability mentioned above includes an amount for this matter based on FHN’s assessment of the settlement.

Legacy Mortgage Matters Excluded from RPL Range

As mentioned above, FHN is directly defending two lawsuits which claim that the offering documents under which certificates relating to securitizations were sold were materially deficient. Underwriters are co-defendants and have demanded, under provisions in the applicable underwriting agreements, that FHN indemnify them for their expenses and any losses they may incur. In addition, FHN has received indemnity demands from underwriters in certain other suits as to which investors claim to have purchased certificates in FH proprietary securitizations but as to which FHN has not been named a defendant. The material loss contingency liability mentioned above includes an amount for an indemnity matter which FHN recently settled with the claimant; that settlement now is completed but had not yet been paid at quarter-end.

For the two pending lawsuits FHN is able to estimate RPL, as mentioned above. For the pending indemnity claims FHN is unable to estimate an RPL range due to significant uncertainties regarding: claims as to which the claimant specifies no dollar amount; the potential remedies that might be available or awarded; the availability of significantly dispositive defenses such as statutes of limitations or repose; the outcome of potentially dispositive early-stage motions such as motions to dismiss; the incomplete status of the discovery process; the lack of a precise statement of damages; and lack of precedent claims. The alleged purchase prices of the certificates subject to pending indemnification claims total $409.9million.

FHN has additional potential exposures related to its former mortgage businesses. A few of those matters have become litigation which FHN currently estimates are immaterial, some are non-litigation claims or threats, some are mere requests for information, and in some areas FHN has no indication of any active or threatened dispute. Some of those matters might eventually result in loan repurchases or make-whole payments and could be included in the repurchase liability discussed below, and some might eventually result in litigation liability, but none are included in the material loss contingency liabilities mentioned above. None are included in the RPL range mentioned above. Additional information concerning such exposures is provided below in “Obligations from Legacy Mortgage Businesses.”

Material Gain Contingency Matter

In second quarter 2015 FHN reached an agreement with DOJ and HUD to settle potential claims related to FHN’s underwriting and origination of loans insured by FHA. Under that agreement FHN paid $212.5 million. FHN believes that certain insurance policies, having an aggregate policy limit of $75 million, provide coverage for FHN’s losses and related costs. The insurers have denied and/or reserved rights to deny coverage. FHN has brought suit against the insurers to enforce the policies under Tennessee law. In connection with this litigation the previously recognized expenses associated with the settled matter may be recouped in part. Under applicable financial accounting guidance FHN has determined that although material gain from this litigation is not probable, there is a reasonably possible (more than remote) chance of a material gain outcome for FHN. FHN cannot determine a probable outcome that may result from this matter because of the uncertainty of the potential outcomes of the legal proceedings and also due to significant uncertainties regarding: legal interpretation of the relevant contracts; potential remedies that might be available or awarded; the ultimate effect of counterclaims asserted by the defendants; and incomplete discovery. Additional information concerning FHN’s former mortgage businesses is provided below in “Obligations from Legacy Mortgage Businesses.”

Obligations from Legacy Mortgage Businesses

Several matters mentioned above stem from FHN’s former mortgage origination and servicing businesses. FHN retains potential for further exposure, in addition to those matters, from those former businesses. The remainder of this “Contingencies” section provides context and other information to enhance an understanding of those matters and exposures.

Overview

Prior to September 2008 FHN originated loans through its legacy mortgage business, primarily first lien home loans, with the intention of selling them. Sales typically were effected either as non-recourse whole-loan sales or through non-recourse proprietary securitizations. Conventional conforming single-family residential mortgage loans were sold predominately to two GSEs: Fannie Mae and Freddie Mac. Also, federally insured or guaranteed whole loans were pooled, and payments to investors were guaranteed through Ginnie Mae. Many mortgage loan originations, especially nonconforming mortgage loans, were sold to investors, or certificate-holders, predominantly through FH proprietary securitizations but also, to a lesser extent, through other whole loans sold to private non-Agency purchasers. FHN used only one trustee for all of its FH proprietary securitizations. FHN also originated mortgage loans eligible for FHA insurance or VA guaranty. In addition, FHN originated and sold HELOCs and second lien mortgages through other whole loans sold to private purchasers and, to a lesser extent, through FH proprietary securitizations. Currently, only one FH securitization of HELOCs remains outstanding.

For non-recourse loan sales, FHN has exposure for repurchase of loans, make-whole damages, or other related damages, arising from claims that FHN breached its representations and warranties made at closing to the purchasers, including GSEs, other whole loan purchasers, and the trustee of FH proprietary securitizations.

During the time these legacy activities were conducted, FHN frequently sold mortgage loans “with servicing retained.” As a result, FHN accumulated substantial amounts of MSR on its balance sheet, as well as contractual servicing obligations and related deposits and receivables. FHN conducted a significant servicing business under its First Horizon Home Loans brand.

MI was required by GSE rules for certain of the loans sold to GSEs and was also provided for certain of the loans that were securitized. MI generally was provided for first lien loans sold or securitized having an LTV ratio at origination of greater than 80 percent.

In 2007, market conditions deteriorated to the point where mortgage-backed securitizations no longer could be sold economically; FHN’s last securitization occurred that year. FHN continued selling mortgage loans to GSEs until August 31, 2008, when FHN sold its national mortgage origination and servicing platforms along with a portion of its servicing assets and obligations. FHN contracted to have its remaining servicing obligations sub-serviced. Since the platform sale FHN has sold substantially all remaining servicing assets and obligations.

Certain mortgage-related terms used in this “Contingencies” section are defined in “Mortgage-Related Glossary” at the end of this Overview.

Repurchase and Make-Whole Obligations

Starting in 2009, FHN received a high number of claims either to repurchase loans from the purchaser or to pay the purchaser to “make them whole” for economic losses incurred. These claims have been driven primarily by loan delinquencies. In repurchase or make-whole claims a loan purchaser typically asserts that specified loans violated representations and warranties FHN made when the loans were sold. A significant majority of claims received overall have come from GSEs, and the remainder are from purchasers of other whole loan sales. FHN has not received a loan repurchase or make-whole claim from the FH proprietary securitization trustee.

Generally, FHN reviews each claim and MI cancellation notice individually. Those responses include appeal, provide additional information, deny the claim (rescission), repurchase the loan or remit a make-whole payment, or reflect cancellation of MI.

After several years resolving repurchase and make-whole claims with each GSE on a loan-by-loan basis, in 2013 and 2014 FHN entered into DRAs with the GSEs, resolving at once a large fraction of pending and potential future claims. Starting in 2014, the overall number of such claims diminished substantially, primarily as a result of the DRAs. Each DRA resolved obligations associated with loans originated from 2000 to 2008, but certain obligations and loans were excluded. Under each DRA, FHN remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of the GSE's Charter Act) and FHN continues to have loan repurchase or monetary compensation obligations under the DRAs related to private mortgage insurance rescissions, cancellations, and denials (with certain exceptions). FHN also has exposure related to loans where there has been a prior bulk sale of servicing, as well as certain other whole-loan sales. With respect to loans where there has been a prior bulk sale of servicing, FHN is not responsible for MI cancellations and denials to the extent attributable to the acts of the current servicer.

While large portions of repurchase claims from the GSEs were settled with the DRAs, large-scale settlement with non-Agency claimants is not practical. Those claims are resolved case by case or, occasionally, with less-comprehensive settlements. In second quarter 2016, in the largest such settlement to date, FHN settled certain repurchase claims which reduced the repurchase and foreclosure liability and resulted in a reversal of certain prior provision expense. Repurchase claims that are not resolved by the parties could become litigation.

FH Proprietary Securitization Actions

FHN has potential financial exposure from FH proprietary securitizations outside of the repurchase/make-whole process. Several investors in certificates sued FHN and others starting in 2009, and several underwriters or other counterparties have demanded that FHN indemnify and defend them in securitization lawsuits. The pending suits generally assert that disclosures made to investors in the offering and sale of certificates were legally deficient.

Servicing Obligations

FHN’s national servicing business was sold as part of the platform sale in 2008. A significant amount of MSR was sold at that time, and a significant amount was retained. The related servicing activities, including foreclosure and loss mitigation practices, not sold in 2008 were outsourced through a three-year subservicing arrangement (the “2008 subservicing agreement”) with the platform buyer (the “2008 subservicer”). The 2008 subservicing agreement expired in 2011 when FHN entered into a replacement agreement with a new subservicer (the “2011 subservicer”). In fourth quarter 2013, FHN contracted to sell a substantial majority of its remaining servicing obligations and servicing assets (including advances) to the 2011 subservicer. The servicing was transferred to the buyer in stages, and was substantially completed in first quarter 2014. The servicing still retained by FHN continues to be subserviced.

As servicer, FHN had contractual obligations to the owners of the loans, primarily GSEs and securitization trustees, to handle billing, custodial, and other tasks related to each loan. Each subservicer undertook to perform those obligations on FHN’s behalf during the applicable subservicing period, although FHN legally remained the servicer of record for those loans that were subserviced.

The 2008 subservicer has been subject to a consent decree, and entered into a settlement agreement with regulators related to alleged deficiencies in servicing and foreclosure practices. The 2008 subservicer has made demands of FHN, under the 2008 subservicing agreement, to pay certain resulting costs and damages totaling $43.5million. FHN disagrees with those demands and has made no payments. This disagreement has the potential to result in litigation and, in any such future litigation, the claim against FHN may be substantial.

A certificate holder has contacted FHN, threatening to make claims based on alleged deficiencies in servicing loans held in certain FH proprietary securitization trusts. FHN cannot predict how this inquiry will proceed nor whether any claim or suit, if made or brought, will be material to FHN.

Origination Data

From 2005 through 2008, FHN originated and sold $69.5 billion of mortgage loans to the Agencies. This includes $57.6 billion of loans sold to GSEs and $11.9 billion of loans guaranteed by Ginnie Mae. Although FHN conducted these businesses before 2005, GSE loans originated in 2005 through 2008 account for a substantial majority of all repurchase requests/make-whole claims received since the 2008 platform sale.

From 2005 through 2007, $26.7billion of mortgage loans were included in FH proprietary securitizations.

Mortgage-Related Glossary
Agencies	the two GSEs and Ginnie Mae	HELOC	home equity line of credit
certificates	securities sold to investors representing interests in mortgage loan securitizations	HUD	Dept. of Housing and Urban Development
DOJ	U.S. Department of Justice	LTV	loan-to-value, a ratio of the loan amount divided by the home value
DRA	definitive resolution agreement with a GSE	MI	private mortgage insurance, insuring against borrower payment default
Fannie Mae, Fannie, FNMA	Federal National Mortgage Association	MSR	mortgage servicing rights
FH proprietary securitization	securitization of mortgages sponsored by FHN under its First Horizon brand	nonconforming loans	loans that did not conform to Agency program requirements
FHA	Federal Housing Administration	other whole loans sold	mortgage loans sold to private, non-Agency purchasers
Freddie Mac, Freddie, FHLMC	Federal Home Loan Mortgage Corporation	2008 platform sale, platform sale, 2008 sale	FHN's sale of its national mortgage origination and servicing platforms in 2008
Ginnie Mae, Ginnie, GNMA	Government National Mortgage Association	pipeline or active pipeline	pipeline of mortgage repurchase, make-whole, & certain related claims against FHN
GSEs	Fannie Mae and Freddie Mac	VA	Veterans Administration

Repurchase and Foreclosure Liability

The repurchase and foreclosure liability is comprised of reserves to cover estimated loss content in the active pipeline, estimated future inflows, as well as estimated loss content related to certain known claims not currently included in the active pipeline. FHN compares the estimated probable incurred losses determined under the applicable loss estimation approaches for the respective periods with current reserve levels. Changes in the estimated required liability levels are recorded as necessary through the repurchase and foreclosure provision.

Based on currently available information and experience to date, FHN has evaluated its loan repurchase, make-whole, and certain related exposuresand has accrued for losses of $67.6 million and $115.5million as of September 30, 2016 and 2015, respectively, including a smaller amount related to equity-lending junior lien loan sales. Accrued liabilities for FHN’s estimate of these obligations are reflected in Other liabilities on the Consolidated Condensed Statements of Condition. Charges/expense reversals to increase/decrease the liability are included within Repurchase and foreclosure provision on the Consolidated Condensed Statements of Income.The estimatesare based upon currently available information and fact patterns that exist as of the balance sheet dates and could be subject to future changes.Changes to any one of these factors could significantly impact the estimate of FHN's liability.

Government-Backed Mortgage Lending Programs

FHN’s FHA and VA program lending was substantial prior to the 2008 platform sale, and has continued at a much lower level since then. As lender, FHN made certain representations and warranties as to the compliance of the loans with program requirements. Over the past several years, most recently in first quarter 2015, FHN occasionally has recognized significant losses associated with settling claims and potential claims by government agencies, and by private parties asserting claims on behalf of agencies, related to these origination activities. At September 30, 2016, FHN had not accrued a liability for any matter related to these government lending programs, and no pending or known threatened matter related to these programs represented a material loss contingency described above.

Other FHN Mortgage Exposures

At September 30, 2016, FHN had not accrued a liability for exposure for repurchase of first-lien loans related to FH proprietary securitizations arising from claims from the trustee that FHN breached its representations and warranties in FH proprietary securitizations at closing. FHN’s trustee is a defendant in a lawsuit in which the plaintiffs have asserted that the trustee has duties to review loans and otherwise to act against FHN outside of the duties specified in the applicable trust documents; FHN is not a defendant in that suit and is not able to assess what, if any, exposure FHN may have as a result of it.

FHN is defending, directly or as indemnitor, certain pending lawsuits brought by purchasers of certificates in FH proprietary securitizations or their assignees. FHN believes a new lawsuit based on federal securities claims that offering disclosures were deficient cannot be brought at this time due to the running of applicable limitation periods, but other investor claims, based on other legal theories, might still be possible. Due to the sales of MSR from 2008 through 2014, FHN has limited visibility into current loan information such as principal payoffs, refinance activity, delinquency trends, and loan modification activity.

Many non-GSE purchasers of whole loans from FHN included those loans in their own securitizations. Regarding such other whole loans sold, FHN made representations and warranties concerning the loans and provided indemnity covenants to the purchaser/securitizer. Typically the purchaser/securitizer assigned key contractual rights against FHN to the securitization trustee. As mentioned above, repurchase and make-whole claims related to specific loans are included in the active pipeline and repurchase reserve. In addition, currently the following categories of actions are pending which involve FHN and other whole loans sold: (i) FHN has received indemnification requests from purchasers of loans or their assignees in cases where FHN is not a defendant; (ii) FHN has received subpoenas seeking loan reviews in cases where FHN is not a defendant; (iii) FHN has received repurchase demands from purchasers or their assignees; and (iv) FHN is a defendant in legal actions involving FHN-originated loans. At September 30, 2016, FHN had not accrued a liability for any litigation matter related to other whole loans sold; however, FHN’s repurchase and foreclosure liability considered certain known exposures from other whole loans sold.

Certain government entities have subpoenaed information from FHN and others. These entities include the FDIC (on behalf of certain failed banks) and the FHLBs of San Francisco, Atlanta, and Seattle, among others. These entities purport to act on behalf of several purchasers of FH proprietary securitizations, and of non-FH securitizations which included other whole loans sold. Collectively, the subpoenas seek information concerning: a number of FH proprietary securitizations and/or underlying loan originations; and originations of certain other whole loans sold which, in many cases, were included by the purchaser in its own securitizations. Some subpoenas fail to identify the specific investments made or loans at issue. Moreover, FHN has limited information regarding at least some of the loans under review. Unless and until a review (if related to specific loans) becomes an identifiable repurchase claim, the associated loans are not considered part of the active pipeline.

OTHER DISCLOSURES

Visa Matters

FHN is a member of the Visa USA network. In October 2007, the Visa organization of affiliated entities completed a series of global restructuring transactions to combine its affiliated operating companies, including Visa USA, under a single holding company, Visa Inc. (“Visa”). Upon completion of the reorganization, the members of the Visa USA network remained contingently liable for certain Visa litigation matters (the "Covered Litigation"). Based on its proportionate membership share of Visa USA, FHN recognized a contingent liability in fourth quarter 2007 related to this contingent obligation. In March 2008, Visa completed its initial public offering (“IPO”) and funded an escrow account from its IPO proceeds to be used to make payments related to the Visa litigation matters. FHN received approximately 2.4 million Class B shares in conjunction with Visa’s IPO.

Conversion of these shares into Class A shares of Visa is prohibited until the final resolution of the covered litigation. In conjunction with the prior sales of Visa Class B shares in December 2010 and September 2011, FHN and the purchasers entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. The conversion ratio is adjusted when Visa deposits funds into the escrow account to cover certain litigation. As of September 30, 2016 and 2015, the derivative liabilities were $6.5 million and $4.8 million, respectively.

In July 2012, Visa and MasterCard announced a joint settlement (the "Settlement") related to the Payment Card Interchange matter, one of the Covered Litigation matters. Based on the amount of the Settlement attributable to Visa and an assessment of FHN's contingent liability accrued for Visa litigation matters, the Settlement did not have a material impact on FHN. The Settlement was vacated upon appeal in June 2016.Accordingly, the outcome of this matter remains uncertain. Additionally, other Covered Litigation matters are also pending judicial resolution, including new matters filed by class members who opted out of the Settlement. So long as any Covered Litigation matter remains pending, FHN's ability to transfer its Visa holdings is restricted, with limited exceptions.

FHN now holds approximately 1.1 million Visa Class B shares.FHN’s Visa shares are not considered to be marketable and therefore are included in the Consolidated Condensed Statements of Condition at their historical cost of $0. As of September 30, 2016, the conversion ratio is 165 percent reflecting a Visa stock split in March 2015, and the contingent liability is $.8 million. Future funding of the escrow would dilute this conversion ratio by an amount that is not determinable at present. Based on the closing price on September 30, 2016, assuming conversion into Class A shares at the current conversion ratio, FHN’s Visa holdings would have a value of approximately $151 million. Recognition of this value is dependent upon the final resolution of the remainder of Visa’s Covered Litigation matters without further reduction of the conversion ratio.

Indemnification Agreements and Guarantees

In the ordinary course of business, FHN enters into indemnification agreements for legal proceedings against its directors and officers and standard representations and warranties for underwriting agreements, merger and acquisition agreements, loan sales, contractual commitments, and various other business transactions or arrangements. The extent of FHN’s obligations under these agreements depends upon the occurrence of future events; therefore, it is not possible to estimate a maximum potential amount of payouts that could be required with such agreements.

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Pension, Savings, And Other Employee Benefits

9 Months Ended

Sep. 30, 2016

Pension, Savings, And Other Employee Benefits [Abstract]

Pension, Savings, And Other Employee Benefits

Note 11 – Pension, Savings, and Other Employee Benefits

Pension plan. FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are “frozen” so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the benefit obligation. Decisions to contribute to the planare based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN contributed $165 million to the qualified pension plan in third quarter 2016. The contribution had no effect on FHN’s Consolidated Condensed Statements of Income. There were no contributions to the qualified pension plan in 2015.

FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $4.9 million for 2015. FHN estimates that by the end of 2016, $5.2 million will have been contributed to the non-qualified plans in 2016.

Savings plan.FHN provides all qualifying full-time employees with the opportunity to participate in the FHN tax qualified 401(k) savingsplan. The qualified plan allows employees to defer receipt of earned salary, up to tax law limits, on a tax-advantaged basis. Accounts, which areheld in trust, may be invested in a wide range of mutual funds and in FHN common stock. Up to tax law limits, FHN provides a100 percentmatch for the first6percent of salary deferred, with company matching contributions invested according to a participant’s current investment elections. Through a non-qualified savings restoration plan, FHN provides a restorative benefit to certain highly-compensated employees who participate in the savings plan and whose contribution elections are capped by tax limitations.

Other employee benefits. FHN provides postretirement life insurance benefits to certain employees and also provides postretirement medical insurance benefits to retirement-eligible employees. The postretirement medical plan is contributory with FHN contributing a fixed amount for certain participants. FHN’s postretirement benefits include certain prescription drug benefits. In third quarter 2015, FHN notified participants of revisions to the retiree medical plan effective January 1, 2016. In conjunction with this action, FHN recognized an $8.3 million curtailment gain in third quarter 2015. FHN also recognized a $1.0 million reduction in the plans’ projected benefit obligation and a $5.3 million tax-effected adjustment to accumulated other comprehensive income.

The components of net periodic benefit cost for the three months ended September 30 are as follows:
		Pension Benefits				Other Benefits
(Dollars in thousands)		2016		2015		2016		2015
Components of net periodic benefit cost
Service cost		$	10	$	10	$	28	$	37
Interest cost			7,648		9,278		335		342
Expected return on plan assets			(9,797)		(9,354)		(227)		(243)
Amortization of unrecognized:
	Prior service cost/(credit)		48		84		43		(291)
	Actuarial (gain)/loss		1,971		2,786		(143)		(334)
Net periodic benefit cost/(credit)		$	(120)	$	2,804	$	36	$	(489)
ASC 715 curtailment gain			-		-		-		(8,283)
Total periodic benefit cost/(credit)		$	(120)	$	2,804	$	36	$	(8,772)

The components of net periodic benefit cost for the nine months ended September 30 are as follows:
		Pension Benefits				Other Benefits
(Dollars in thousands)		2016		2015		2016		2015
Components of net periodic benefit cost
Service cost		$	30	$	30	$	83	$	112
Interest cost			23,412		27,318		969		1,062
Expected return on plan assets			(29,342)		(28,137)		(685)		(726)
Amortization of unrecognized:
	Prior service cost/(credit)		147		250		128		(873)
	Actuarial (gain)/loss		6,106		7,577		(608)		(822)
Net periodic benefit cost/(credit)		$	353	$	7,038	$	(113)	$	(1,247)
ASC 715 curtailment gain			-		-		-		(8,283)
Total periodic benefit cost/(credit)		$	353	$	7,038	$	(113)	$	(9,530)

In 2016, FHN changed its methodology for the calculation of interest cost for its applicable employee benefit plans. Prior to 2016 FHN utilized a weighted average discount rate to determine interest cost, which is the same discount rate used to calculate the projected benefit obligation. Starting in 2016, FHN has adopted a spot rate approach which applies duration-specific rates from the full yield curve to estimated future benefit payments for the determination of interest cost. This change in accounting estimate is expected to reduce annual interest cost across all plans by $5.8 million in 2016.

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Business Segment Information

9 Months Ended

Sep. 30, 2016

Business Segment Information [Abstract]

Business Segment Information

Note 12 – Business Segment Information

FHN has four business segments: regional banking, fixed income, corporate, and non-strategic. The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customersin Tennessee and other selected markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, and cash management. Additionally, the regional banking segment includes correspondent banking which provides credit, depository, and other banking related services to other financial institutions nationally. The fixed income segment consists of fixed income sales, trading, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists ofunallocated corporate expenses, expense on subordinated debt issuances, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, tax credit investment activities, gains on the extinguishment of debt, and acquisition-related costs. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses.

Periodically, FHN adapts its segments to reflect managerial or strategic changes. FHN may also modify its methodology of allocating expenses and equity among segments which could change historical segment results. Business segment revenue, expense, asset, and equity levels reflect those which are specifically identifiable or which are allocated based on an internal allocation method. Because the allocations are based on internally developed assignments and allocations, to an extent they are subjective. Generally, all assignments and allocations have been consistently applied for all periods presented. The following table reflects the amounts of consolidated revenue, expense, tax, and assets for each segment for the three and nine months ended September 30:

		Three Months Ended			Nine Months Ended
		September 30			September 30
(Dollars in thousands)	2016		2015		2016		2015
Consolidated
Net interest income	$	185,195	$	163,562	$	533,533	$	487,068
Provision for loan losses		4,000		1,000		11,000		8,000
Noninterest income		148,545		125,103		428,364		385,093
Noninterest expense		233,558		215,436		687,307		810,051
Income/(loss) before income taxes		96,182		72,229		263,590		54,110
Provision/(benefit) for income taxes		28,547		8,897		82,802		8,226
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Average assets	$	27,609,702	$	25,312,903	$	27,021,137	$	25,454,266
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Regional Banking
Net interest income	$	190,510	$	165,253	$	541,144	$	485,564
Provision/(provision credit) for loan losses		8,544		6,696		34,194		28,689
Noninterest income		65,128		62,763		185,679		188,942
Noninterest expense		144,972		135,589		454,638		415,026
Income/(loss) before income taxes		102,122		85,731		237,991		230,791
Provision/(benefit) for income taxes		37,095		30,876		84,976		82,458
Net income/(loss)	$	65,027	$	54,855	$	153,015	$	148,333
Average assets	$	17,582,996	$	14,989,007	$	16,704,503	$	14,748,349

Fixed Income
Net interest income	$	2,412	$	3,003	$	8,225	$	11,616
Noninterest income		72,073		51,757		217,278		169,323
Noninterest expense		59,575		59,844		181,124		165,836
Income/(loss) before income taxes		14,910		(5,084)		44,379		15,103
Provision/(benefit) for income taxes		5,459		(2,384)		16,089		4,914
Net income/(loss)	$	9,451	$	(2,700)	$	28,290	$	10,189
Average assets	$	2,305,968	$	2,190,624	$	2,348,619	$	2,350,786

Corporate
Net interest income/(expense)	$	(18,195)	$	(19,027)	$	(48,409)	$	(52,467)
Noninterest income		5,134		8,559		15,766		17,845
Noninterest expense		14,841		11,804		44,392		40,207
Income/(loss) before income taxes		(27,902)		(22,272)		(77,035)		(74,829)
Provision/(benefit) for income taxes		(16,739)		(24,946)		(40,833)		(52,640)
Net income/(loss)	$	(11,163)	$	2,674	$	(36,202)	$	(22,189)
Average assets	$	5,880,090	$	5,886,929	$	6,024,553	$	5,951,999

Non-Strategic
Net interest income	$	10,468	$	14,333	$	32,573	$	42,355
Provision/(provision credit) for loan losses		(4,544)		(5,696)		(23,194)		(20,689)
Noninterest income		6,210		2,024		9,641		8,983
Noninterest expense		14,170		8,199		7,153		188,982
Income/(loss) before income taxes		7,052		13,854		58,255		(116,955)
Provision/(benefit) for income taxes		2,732		5,351		22,570		(26,506)
Net income/(loss)	$	4,320	$	8,503	$	35,685	$	(90,449)
Average assets	$	1,840,648	$	2,246,343	$	1,943,462	$	2,403,132
Certain previously reported amounts have been reclassified to agree with current presentation.

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Variable Interest Entities

9 Months Ended

Sep. 30, 2016

Variable Interest Entities [Abstract]

Variable Interest Entities

Note 13 – Variable Interest Entities

ASC 810 defines a VIE as a legal entity where (a) the equity investors, as a group, lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, (b) the equity investors, as a group, lack either, (1) the power through voting rights, or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance, (2) the obligation to absorb the expected losses of the entity, or (3) the right to receive the expected residual returns of the entity, or (c) the entity is structured with non-substantive voting rights. A variable interest is a contractual ownership, or other interest, that fluctuates with changes in the fair value of the VIE’s net assets exclusive of variable interests. Under ASC 810, as amended, a primary beneficiary is required to consolidate a VIE when it has a variable interest in a VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant.

Consolidated Variable Interest Entities

FHN holds variable interests in a proprietary HELOC securitization trust it established as a source of liquidity for consumer lending operations. Based on its restrictive nature, the trust is considered a VIE as the holders of equity at risk do not have the power through voting rights or similar rights to direct the activities that most significantly impact the trust’s economic performance. The retention of MSR and a residual interest results in FHN potentially absorbing losses or receiving benefits that are significant to the trust. FHN is considered the primary beneficiary, as it is assumed to have the power, as Master Servicer, to most significantly impact the activities of the VIE. Consolidation of the trust results in the recognition of the trust proceeds as restricted borrowings since the cash flows on the securitized loans can only be used to settle the obligations due to the holders of trust securities. Through first quarter 2016 the trust experienced a rapid amortization period and FHN was obligated to provide subordinated funding. During the period, cash payments from borrowers were accumulated to repay outstanding debt securities while FHN continued to make advances to borrowers when they drew on their lines of credit. FHN then transferred the newly generated receivables into the securitization trust. FHN is reimbursed for these advances only after other parties in the securitization have received all of the cash flows to which they are entitled. If loan losses requiring draws on the related monoline insurers’ policies(which protect bondholders in the securitization) exceed a certain level, FHN may not receive reimbursement for all of the funds advanced to borrowers, as the senior bondholders and the monoline insurers typically have priority for repayment. Amounts funded from monoline insurance policies are considered restricted term borrowings in FHN’s Consolidated Condensed Statements of Condition. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trust, the creditors of the trust hold no recourse to the assets of FHN.

FHN has established certain rabbi trusts related to deferred compensation plans offered to its employees. FHN contributes employee cash compensation deferrals to the trusts and directs the underlying investments made by the trusts. The assets of these trusts are available to FHN’s creditors only in the event that FHN becomes insolvent. These trusts are considered VIEs as there is no equity at risk in the trusts since FHN provided the equity interest to its employees in exchange for services rendered. FHN is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities that most significantly impact the economic performance of the rabbi trusts through its ability to direct the underlying investments made by the trusts. Additionally, FHN could potentially receive benefits or absorb losses that are significant to the trusts due to its right to receive any asset values in excess of liability payoffs and its obligation to fund any liabilities to employees that are in excess of a rabbi trust’s assets.

The following table summarizes VIEs consolidated by FHN as of September 30, 2016 and 2015:
			September 30, 2016						September 30, 2015
			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands)			Carrying Value			Carrying Value			Carrying Value			Carrying Value
Assets:
Cash and due from banks				$	127			N/A		$	2,000			N/A
Loans, net of unearned income					38,519			N/A			59,258			N/A
	Less: Allowance for loan losses				588			N/A			54			N/A
		Total net loans			37,931			N/A			59,204			N/A
Other assets					286		$	72,916			114		$	66,490
Total assets				$	38,344		$	72,916		$	61,318		$	66,490
Liabilities:
Term borrowings				$	26,062			N/A		$	48,491			N/A
Other liabilities					3		$	53,429			3		$	49,275
Total liabilities				$	26,065		$	53,429		$	48,494		$	49,275

Nonconsolidated Variable Interest Entities

Low Income Housing Partnerships. First Tennessee Housing Corporation (“FTHC”), a wholly-owned subsidiary of FTBNA, makes equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants generally within FHN’s primary geographic region. LIHTC partnerships are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the LIHTC partnerships as it has a risk of loss for its capital contributions and funding commitments to each partnership. The general partners are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

FHN accounts for all qualifying LIHTC investments under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense/(benefit). LIHTC investments that do not qualify for the proportional amortization method are accounted for using the equity method. Expenses associated with these investments were not significant for the three or nine months ended September 30, 2016 and 2015. The following table summarizes the impact to the Provision/(benefit) for income taxes on the Consolidated Condensed Statements of Income for the three and nine months endedSeptember 30, 2016 and 2015 for LIHTC investments accounted for under the proportional amortization method.

		Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)		2016		2015		2016		2015
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	5,445	$	2,293	$	10,073	$	6,653
Low income housing tax credits		(2,615)		(2,363)		(7,672)		(7,089)
Other tax benefits related to qualifying LIHTC investments		(6,131)		(819)		(8,310)		(2,418)

Other Tax Credit Investments. First Tennessee New Markets Corporation (“FTNMC”), a wholly-owned subsidiary of FTBNA, makes equity investments through wholly-owned subsidiaries as a non-managing member in various limited liability companies (“LLCs”) that sponsor community development projects utilizing the New Market Tax Credit (“NMTC”) pursuant to Section 45 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital and to support FHN’s community reinvestment initiatives. The activities of the LLCs include providing investment capital for low-income communities within FHN’s primary geographic region. A portion of the funding of FTNMC’s investment in a NMTC LLC is obtained via a loan from an unrelated third-party that is typically a community development enterprise. The NMTC LLCs are considered VIEs as FTNMC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. While FTNMC could absorb losses that are significant to the NMTC LLCs as it has a risk of loss for its initial capital contributions, the managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the NMTC LLCs’ economic performance and the managing members are exposed to all losses beyond FTNMC’s initial capital contributions.

FTHC also makes equity investments as a limited partner or non-managing member in entities that receive Historic Tax Credits pursuant to Section 47 of the Internal Revenue Code. The purpose of these entities is the rehabilitation of historic buildings with the tax credits provided to incent private investment in the historic cores of cities and towns. These entities are considered VIEs as FTHC, the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the performance of the entity through voting rights or similar rights. FTHC could absorb losses that are significant to the entities as it has a risk of loss for its capital contributions and funding commitments to each partnership. The managing members are considered the primary beneficiaries as managerial functions give them the power to direct the activities that most significantly impact the entities’ economic performance and the managing members are exposed to all losses beyond FTHC’s initial capital contributions and funding commitments.

Small Issuer Trust Preferred Holdings. FTBNA holds variable interests in trusts which have issued mandatorily redeemable preferred capital securities (“trust preferreds”) for smaller banking and insurance enterprises. FTBNA has no voting rights for the trusts’ activities. The trusts’ only assets are junior subordinated debentures of the issuing enterprises. The creditors of the trusts hold no recourse to the assets of FTBNA. These trusts meet the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. Based on the nature of the trusts’ activities and the size of FTBNA’s holdings, FTBNA could potentially receive benefits or absorb losses that are significant to the trusts regardless of whether a majority of a trust’s securities are held by FTBNA. However, since FTBNA is solely a holder of the trusts’ securities, it has no rights which would give it the power to direct the activities that most significantly impact the trusts’ economic performance and thus it is not considered the primary beneficiary of the trusts. FTBNA has no contractual requirements to provide financial support to the trusts.

On-Balance Sheet Trust Preferred Securitization. In 2007, FTBNA executed a securitization of certain small issuer trust preferreds for which the underlying trust meets the definition of a VIE as the holders of the equity investment at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entity’s economic performance. FTBNA could potentially receive benefits or absorb losses that are significant to the trust based on the size and priority of the interests it retained in the securities issued by the trust. However, since FTBNA did not retain servicing or other decision making rights, FTBNA is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the trust’s economic performance. Accordingly, FTBNA has accounted for the funds received through the securitization as a term borrowing in its Consolidated Condensed Statements of Condition. FTBNA has no contractual requirements to provide financial support to the trust.

Proprietary Residential Mortgage Securitizations. FHN holds variable interests in proprietary residential mortgage securitization trusts it established prior to 2008 as a source of liquidity for its mortgage banking operations. Except for recourse due to breaches of representations and warranties made by FHN in connection with the sale of the loans to the trusts, the creditors of the trusts hold no recourse to the assets of FHN. Additionally, FHN has no contractual requirements to provide financial support to the trusts. Based on their restrictive nature, the trusts are considered VIEs as the holders of equity at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the trusts’ economic performance. While FHN is assumed to have the power as servicer to most significantly impact the activities of such VIEs, in situations where FHN does not have the ability to participate in significant portions of a securitization trust’s cash flows, FHN is not considered the primary beneficiary of the trust. Therefore, these trusts are not consolidated by FHN.

Holdings & Short Positions in Agency Mortgage-Backed Securities. FHN holds securities issued by various Agency securitization trusts. Based on their restrictive nature, the trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights, or similar rights, to direct the activities that most significantly impact the entities’ economic performance. FHN could potentially receive benefits or absorb losses that are significant to the trusts based on the nature of the trusts’ activities and the size of FHN’s holdings. However, FHN is solely a holder of the trusts’ securities and does not have the power to direct the activities that most significantly impact the trusts’ economic performance, and is not considered the primary beneficiary of the trusts. FHN has no contractual requirements to provide financial support to the trusts.

Commercial Loan Troubled Debt Restructurings. For certain troubled commercial loans, FTBNA restructures the terms of the borrower’s debt in an effort to increase the probability of receipt of amounts contractually due. Following a troubled debt restructuring, the borrower entity typically meets the definition of a VIE as the initial determination of whether an entity is a VIE must be reconsidered as events have proven that the entity’s equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As FTBNA does not have the power to direct the activities that most significantly impact such troubled commercial borrowers’ operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, FTBNA is exposed to potentially significant benefits and losses of the borrowing entity. FTBNA has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt that allows for preparation of the underlying collateral for sale.

Sale Leaseback Transaction. In fourth quarter 2015, FTB entered into an agreement with a single asset leasing entity for the sale and lease back of an office building. In conjunction with this transaction, FTB loaned funds to a related party of the buyer that were used for the purchase price of the building. FTB also entered into a construction loan agreement with the single asset entity for renovation of the building. Since this transaction did not qualify as a sale, it is being accounted for using the deposit method which creates a net asset or liability for all cash flows between FTB and the buyer. The buyer-lessor in this transaction meets the definition of a VIE as it does not have sufficient equity at risk since FTB is providing the funding for the purchase and renovation. A related party of the buyer-lessor has the power to direct the activities that most significantly impact the operations and could potentially receive benefits or absorb losses that are significant to the transactions, making it the primary beneficiary. Therefore, FTB does not consolidate the leasing entity.

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2016:
	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	65,754		$	12,817	(a)
Other tax credit investments (b) (c)		20,321			-	Other assets
Small issuer trust preferred holdings (d)		333,309			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,370			64,803	(e)
Proprietary residential mortgage securitizations		17,201			-	(f)
Holdings of agency mortgage-backed securities (d)		4,586,329			-	(g)
Short positions in agency mortgage-backed securities (h)		N/A			199	Trading liabilities
Commercial loan troubled debt restructurings (i)		36,354			-	Loans, net of unearned income
Sale-leaseback transaction		11,827			-	(j)

• Maximum loss exposure represents $52.9 million of current investments and $12.8 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2017.
• A liability is not recognized as investments are written down over the life of the related tax credit.
• Maximum loss exposure represents current investment balance. Of the initial investment, $18.0million was funded through loans from community development enterprises.
• Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
• Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.8 million classified as Term borrowings.
• Includes $.3 million classified as MSR, $2.8 million classified as Trading securities,and $14.1 million of aggregate servicing advances.
• Includes $.7 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
• No exposure of loss due to the nature of FHN’s involvement.
• Maximum loss exposure represents $36.3 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

The following table summarizes FHN's nonconsolidated VIEs as of September 30, 2015:
	Maximum		Liability
(Dollars in thousands)	Loss  Exposure		Recognized		Classification
Type
Low income housing partnerships	$	76,982	$	22,224	(a)
Other tax credit investments (b) (c)		21,359		-	Other assets
Small issuer trust preferred holdings (d)		344,291		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		50,037		64,137	(e)
Proprietary and agency residential mortgage securitizations		25,105		-	(g)
Holdings of agency mortgage-backed securities (d)		4,030,604		-	(h)
Short positions in agency mortgage-backed securities (f)		N/A		896	Trading liabilities
Commercial loan troubled debt restructurings (i) (j)		29,280		-	Loans, net of unearned income

• Maximum loss exposure represents $54.8 million of current investments and $22.2 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.
• A liability is not recognized as investments are written down over the life of the related tax credit.
• Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.
• Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
• Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.1 million classified as Term borrowings.
• No exposure of loss due to the nature of FHN’s involvement.
• Includes $.6 million classified as MSR, $4.6 million classified as Trading securities, and $19.9 million of aggregate servicing advances.
• Includes $549.2 million classified as Trading securities and $3.5 billion classified as Securities available-for-sale.
• Maximum loss exposure represents $29.2 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers’ operations.

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Derivatives

9 Months Ended

Sep. 30, 2016

Derivatives [Abstract]

Derivatives

Note 14 – Derivatives

In the normal course of business, FHN utilizes various financial instruments (including derivative contracts and credit-related agreements) through its fixed income and risk management operations, as part of its risk management strategy and as a means to meet customers’ needs. Derivative instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet as required by GAAP. The contractual or notional amounts of these financial instruments do not necessarily represent the amount of credit or market risk. However, they can be used to measure the extent of involvement in various types of financial instruments. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. The Asset/Liability Committee (“ALCO”) controls, coordinates, and monitors the usage and effectiveness of these financial instruments.

Credit risk represents the potential loss that may occur if a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. FHN manages credit risk by entering into financial instrument transactions through national exchanges, primary dealers or approved counterparties, and by using mutual margining and master netting agreements whenever possible to limit potential exposure. FHN also maintains collateral posting requirements with certain counterparties to limit credit risk. On September 30, 2016 and 2015, respectively, FHN had $77.6 million and $88.6 million of cash receivables and $42.1 million and $47.4 million of cash payables related to collateral posting under master netting arrangements, inclusive of collateral posted related to contracts with adjustable collateral posting thresholds and over-collateralized positions, with derivative counterparties. With exchange-traded contracts, the credit risk is limited to the clearinghouse used. For non-exchange traded instruments, credit risk may occur when there is a gain in the fair value of the financial instrument and the counterparty fails to perform according to the terms of the contract and/or when the collateral proves to be of insufficient value. See additional discussion regarding master netting agreements and collateral posting requirements later in this note under the heading “Master Netting and Similar Agreements.” Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates or the prices of debt instruments. FHN manages market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. FHN continually measures this risk through the use of models that measure value-at-risk and earnings-at-risk.

Derivative Instruments. FHN enters into various derivative contracts both in a dealer capacity to facilitate customer transactions and as a risk management tool. Where contracts have been created for customers, FHN enters into upstream transactions with dealers to offset its risk exposure. Contracts with dealers that require central clearing are novated to a clearing agent who becomes FHN's counterparty. Derivatives are also used as a risk management tool to hedge FHN’s exposure to changes in interest rates or other defined market risks.

Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specified price, with delivery or settlement at a specified date. Interest rate option contracts give the purchaser the right, but not the obligation, to buy or sell a specified quantity of a financial instrument, at a specified price, during a specified period of time. Caps and floors are options that are linked to a notional principal amount and an underlying indexed interest rate. Interest rate swaps involve the exchange of interest payments at specified intervals between two parties without the exchange of any underlying principal. Swaptions are options on interest rate swaps that give the purchaser the right, but not the obligation, to enter into an interest rate swap agreement during a specified period of time.

Trading Activities

FHN’s fixed incomesegment trades U.S. Treasury, U.S. Agency, mortgage-backed, corporate and municipal fixed income securities, and other securities for distribution to customers. When these securities settle on a delayed basis, they are considered forward contracts. Fixed income also enters into interest rate contracts, including caps, swaps, and floors, for its customers. In addition, fixed income enters into futures and option contracts to economically hedge interest rate risk associated with a portion of its securities inventory. These transactions are measured at fair value, with changes in fair value recognized currently in fixed income noninterest income. Related assets and liabilities are recorded on the Consolidated Condensed Statements of Condition as Derivative assets and Derivative liabilities. The FTN Financial Risk Committee and the Credit Risk Management Committee collaborate to mitigate credit risk related to these transactions. Credit risk is controlled through credit approvals, risk control limits, and ongoing monitoring procedures. Total trading revenues were $59.0 million and $43.0 million for the three months ended September 30, 2016 and 2015, respectively, and $185.9million and $143.2 million for the nine months ended September 30, 2016 and 2015. Trading revenues are inclusive of both derivative and non-derivative financial instruments, and are included in fixed income noninterest income.

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of September 30, 2016 and 2015:
	September 30, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,891,507		$	80,800		$	580
Offsetting Upstream Interest Rate Contracts		1,891,507			580			80,800
Option Contracts Purchased		67,500			89			-
Forwards and Futures Purchased		4,183,225			10,092			965
Forwards and Futures Sold		4,528,079			1,667			9,959

	September 30, 2015
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,670,717		$	82,905		$	1,512
Offsetting Upstream Interest Rate Contracts		1,670,717			1,512			82,905
Option Contracts Purchased		10,000			23			-
Forwards and Futures Purchased		3,458,150			15,561			353
Forwards and Futures Sold		3,578,542			774			15,568

Interest Rate Risk Management

FHN’s ALCO focuses on managing market risk by controlling and limiting earnings volatility attributable to changes in interest rates. Interest rate risk exists to the extent that interest-earning assets and interest-bearing liabilities have different maturity or repricing characteristics. FHN uses derivatives, including swaps, caps, options, and collars, that are designed to moderate the impact on earnings as interest rates change. Interest paid or received for swaps utilized by FHN to hedge the fair value of long term debt is recognized as an adjustment of the interest expense of the liabilities whose risk is being managed. FHN’s interest rate risk management policy is to use derivatives to hedge interest rate risk or market value of assets or liabilities, not to speculate. In addition, FHN has entered into certain interest rate swaps and caps as a part of a product offering to commercial customers that includes customer derivatives paired with upstream offsetting market instruments that, when completed, are designed to mitigate interest rate risk. These contracts do not qualify for hedge accounting and are measured at fair value with gains or losses included in current earnings in Noninterest expense on the Consolidated Condensed Statements of Income.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $400.0million of senior debt issued by FTBNA which matures in December 2019. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $9.6 million and $8.8 million in Derivative assets as of September 30, 2016 and 2015, respectively. There was an insignificant level of ineffectiveness related to this hedge.

FHN has designated a derivative transaction in a hedging strategy to manage interest rate risk on $500.0 million of senior debt which matures in December 2020. This qualifies for hedge accounting under ASC 815-20 using the long-haul method. FHN entered into a pay floating, receive fixed interest rate swap to hedge the interest rate risk of the senior debt. The balance sheet impact of this swap was $7.7million in Derivative assets as of September 30, 2016. There was an insignificant level of ineffectiveness related to this hedge.

Prior to maturity in April 2016, FHN designated a derivative transaction in a hedging strategy to manage interest rate risk of certain term borrowings totaling $250.0 million. These swaps were accounted for as fair value hedges under the shortcut method. The balance sheet amount of this swap was $6.1 million in Derivativeassets on September 30, 2015.

Prior to maturity in December 2015, FHN designated a derivative transaction in a hedging strategy to manage interest rate risk on its $500 million noncallable senior debt. This derivative qualified for hedge accounting under ASC 815-20 using the long-haul method. FHN hedged the interest rate risk on this debt using a pay floating, receive fixed interest rate swap. The balance sheet amount of this swap was $2.1 million in Derivative assets as of September 30, 2015. There was no ineffectiveness related to this hedge.

Prior to redemption in third quarter 2015, FHN designated derivative transactions in hedging strategies to manage interest rate risk on subordinated debt related to its trust preferred securities. These qualified for hedge accounting under ASC 815-20 using the long-haul method. FHN hedged the interest rate risk of the subordinated debt totaling $200 million using a pay floating, receive fixed interest rate swap. There was no ineffectiveness related to this hedge. In third quarter 2015, FHN called its junior subordinated debt, which triggered a call of the trust preferred securities, and removed all associated hedges. The redemption resulted in a gain on extinguishment of debt of $5.8 million.

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the three and nine months ended September 30, 2016 and 2015:
										Gains/(Losses)
										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2016				September 30, 2016
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	1,204,975		$	45,096	$	89			$	(1,964)			$	18,749
	Offsetting Upstream Interest Rate Contracts (a)		1,204,975			89		45,596				1,964				(18,749)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	900,000		$	17,257		N/A			$	(7,254)			$	19,352
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	900,000	(c)		$	7,152	(d)		$	(19,059)	(d)

										Gains/(Losses)
										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2015				September 30, 2015
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	790,321		$	34,507	$	210			$	10,558			$	8,643
	Offsetting Upstream Interest Rate Contracts (a)		790,321			210		35,007				(10,558)				(8,643)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,150,000		$	16,960		N/A			$	3,247			$	(6,593)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,150,000	(c)		$	(3,167)	(d)		$	6,645	(d)

• Gains/losses included in the All other expense section of the Consolidated CondensedStatements of Income.
• Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.
• Represents par value of term borrowings being hedged.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

In first quarter 2016, FHN entered into a pay floating, receive fixed interest rate swap in a hedging strategy to manage its exposure to the variability in cash flows related to the interest payments for the following five years on $250 million principal of debt instruments, which primarily consist of held-to-maturity trust preferred loans that have variable interest payments based on LIBOR. This qualifies for hedge accounting as a cash flow hedge under ASC 815-20. Changes in the fair value of this derivative are recorded as a component of AOCI, to the extent that the hedge relationship is effective. Amounts are reclassified from AOCI to earnings as the hedged cash flows affect earnings. FTB measures ineffectiveness using the Hypothetical Derivative Method. To the extent that any ineffectiveness exists in the hedge relationships, the amounts are recorded in current period earnings

The following table summarizes FHN’s derivative activities associated with cash flow hedges as of and for the three and nine months ended September 30, 2016.

Gains/(Losses)

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

September 30, 2016

September 30, 2016

Cash Flow Hedges

Hedging Instruments:

Interest Rate Swaps (a)

$

250,000

$

5,061

N/A

$

(2,545)

(b)

$

5,061

(b)

Hedged Items:

Variability in Cash Flows Related to Trust Preferred Loans

N/A

250,000

N/A

N/A

N/A

(a)After tax gains/(losses) included within AOCI.

(b)Includes approximately $1.2 million expected to be reclassified into earnings in the next twelve months.

FHN hedges held-to-maturity trust preferred loans which have an initial fixed rate term before conversion to a floating rate. FHN has entered into pay fixed, receive floating interest rate swaps to hedge the interest rate risk associated with this initial term. Interest paid or received for these swaps isrecognized as an adjustment of the interest income of the assets whose risk is being hedged. Basis adjustments remaining at the end of the hedge term are being amortized as an adjustment to interest income over the remaining life of the loans. Gains or losses are included in Other income and commissions on the Consolidated Condensed Statements of Income.

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the three and nine months ended September 30, 2016 and 2015:
												Gains/(Losses)
												Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2016				September 30, 2016
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	287		$	93			$	201
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(92)	(c)		$	(199)	(c)

												Gains/(Losses)
												Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2015				September 30, 2015
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	600		$	40			$	144
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(39)	(c)		$	(142)	(c)

• Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
• Represents principal balance being hedged.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Other Derivatives

In conjunction with the sales of a portion of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make or receive cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. As of September 30, 2016and 2015, the derivative liabilities associated with the sales of Visa Class B shares were $6.5 million and $4.8 million, respectively. See the Visa Matters section ofNote 10 – Contingencies and Other Disclosures for more information regarding FHN’s Visa shares.

FHN utilizes cross currency swaps and cross currency interest rate swaps to economically hedge its exposure to foreign currency risk and interest rate risk associated with non-U.S. dollar denominated loans. As of September 30, 2016 and 2015, these loans were valued at $2.6 million and $2.8 million, respectively. The balance sheet amount and the gains/losses associated with these derivatives were not significant.

Master Netting and Similar Agreements

As previously discussed, FHN uses master netting agreements, mutual margining agreements and collateral posting requirements to minimize credit risk on derivative contracts. Master netting and similar agreements are used when counterparties have multiple derivatives contracts that allow for a “right of setoff,” meaning that a counterparty may net offsetting positions and collateral with the same counterparty under the contract to determine a net receivable or payable. The following discussion provides an overview of these arrangements which may vary due to the derivative type and market in which a derivative transaction is executed.

Interest rate derivatives are subject to agreements consistent with standard agreement forms of the International Swap and Derivatives Association (“ISDA”).Currently, all interest rate derivative contracts are entered into as over-the-counter transactions and collateral posting requirements are based on the net asset or liability position with each respective counterparty. For contracts that require central clearing, novation to a counterparty with access to a clearinghouse occurs and collateral is posted. Cash collateral received (posted) for interest rate derivatives is recognized as a liability (asset) on FHN’s Consolidated Condensed Statements of Condition.

Interest rate derivatives with customers that are smaller financial institutions typically require posting of collateral by the counterparty to FHN. This collateral is subject to a threshold with daily adjustments based upon changes in the level or fair value of the derivative position. Positions and related collateral can be netted in the event of default. Collateral pledged by a counterparty is typically cash or securities. The securities pledged as collateral are not recognized within FHN's Consolidated Condensed Statements of Condition. Interest rate derivatives associated with lending arrangements share the collateral with the related loan(s). The derivative and loan positions may be netted in the event of default.For disclosure purposes, the entire collateral amount is allocated to the loan.

Interest rate derivatives with larger financial institutions entered into prior to required central clearing typically contain provisions whereby the collateral posting thresholds under the agreements adjust based on the credit ratings of both counterparties. If the credit rating of FHN and/or FTBNA is lowered, FHN could be required to post additional collateral with the counterparties. Conversely, if the credit rating of FHN and/or FTBNA is increased, FHN could have collateral released and be required to post less collateral in the future. Also, if a counterparty's credit ratings were to decrease, FHN and/or FTBNA could require the posting of additional collateral; whereas if a counterparty's credit ratings were to increase, the counterparty could require the release of excess collateral. Collateral for these arrangements is adjusted daily based on changes in the net fair value position with each counterparty.

The net fair value, determined by individual counterparty, of all derivative instruments with adjustable collateral posting thresholds was $80.8million of assets and $66.7million of liabilities on September 30,2016, and $93.1 million of assets and $79.7million of liabilities on September 30, 2015. As of September 30, 2016 and 2015, FHN had received collateral of $156.9 million in both periods and posted collateral of $68.4 million and $79.9 million, respectively, in the normal course of business related to these agreements.

Certain agreements entered into prior to required central clearing also contain accelerated termination provisions, inclusive of the right of offset, if a counterparty’s credit rating falls below a specified level. If a counterparty's debt rating (including FHN's and FTBNA’s) were to fall below these minimums, these provisions would be triggered, and the counterparties could terminate the agreements and require immediate settlement of all derivative contracts under the agreements. The net fair value, determined by individual counterparty, of all derivative instruments with credit-risk-related contingent accelerated termination provisions was $80.5 million of assets and $23.8 million of liabilities on September 30, 2016, and $93.1 million of assets and $20.2 million of liabilities on September 30, 2015. As of September 30, 2016 and 2015, FHN had received collateral of $156.9 million in both periods and posted collateral of $28.4million and $24.6 million, respectively, in the normal course of business related to these contracts.

FHN’s fixed income segment buys and sells various types of securities for its customers. When these securities settle on a delayed basis, they are considered forward contracts, and are generally not subject to master netting agreements. For futures and options, FHN transacts through a third party, and the transactions are subject to margin and collateral maintenance requirements.In the event of default, open positions can be offset along with the associated collateral.

For this disclosure, FHN considers the impact of master netting and other similar agreements which allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net derivative asset or liability position with the related securities and cash collateral. The application of the collateral cannot reduce the net derivative asset or liability position below zero, and therefore any excess collateral is not reflected in the following tables.

The following table provides details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of September 30:
								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statements of		in the Statements		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
2016 (b)	$	148,883	$	-	$	148,883	$	(8,823)	$	(125,095)	$	14,965
2015 (b)		136,098		-		136,098		(9,748)		(121,401)		4,949

• Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of September 30, 2016 and2015, $11.9 million and $16.5 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
• 2016 and 2015are comprised entirely of interest rate derivative contracts.

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of September 30:
									Gross amounts not offset in the
									Statements of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statements of			in the Statements		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
2016 (b)	$	127,352	$	-		$	127,352	$	(8,823)	$	(57,298)	$	61,231
2015 (b)		120,234		-			120,234		(9,748)		(78,211)		32,275

• Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As ofSeptember 30,2016 and 2015, $17.5 million and $20.7 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
• 2016and 2015 are comprised entirely of interest rate derivative contracts.

XML

Master Netting And Similar Agreements

9 Months Ended

Sep. 30, 2016

Master Netting Agreements And Similar Arrangements [Abstract]

Master Netting Agreements And Similar Arrangements

Note 15 –Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing and Lending Transactions

For repurchase, reverse repurchase and securities borrowing and lending transactions, FHN and each counterparty have the ability to offset all open positions and related collateral in the event of default.Due to the nature of these transactions, the value of the collateral for each transaction approximates the value of the corresponding receivable or payable. For repurchase agreements within FHN’s fixed income business, transactions are collateralized by securities which are delivered on the settlement date and are maintained throughout the term of the transaction. For FHN’s repurchase agreements through banking activities, securities are typically pledged at the time of the transaction and not released until settlement. For asset positions, the collateral is not included on FHN’s Consolidated Condensed Statements of Condition. For liability positions, securities collateral pledged by FHN is generally represented within FHN’s trading or available-for-sale securities portfolios.

For this disclosure, FHN considers the impact of master netting and other similar agreements that allow FHN to settle all contracts with a single counterparty on a net basis and to offset the net asset or liability position with the related securities collateral. The application of the collateral cannot reduce the net asset or liability position below zero, and therefore any excess collateral is not reflected in the tables below.

The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of September 30:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting		Securities collateral
	Gross amounts		offset in the		assets presented		securities sold		(not recognized on
	of recognized		Statements of		in the Statements		under agreements		FHN's Statements
(Dollars in thousands)	assets		Condition		of Condition		to repurchase		of Condition)		Net amount
Securities purchased under agreements to resell:
2016	$	802,815	$	-	$	802,815	$	(1,632)	$	(792,851)	$	8,332
2015		793,098		-		793,098		(2,909)		(782,844)		7,345

The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of September 30:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting
	Gross amounts		offset in the		liabilities presented		securities
	of recognized		Statements of		in the Statements		purchased under		Securities
(Dollars in thousands)	liabilities		Condition		of Condition		agreements to resell		Collateral		Net amount
Securities sold under agreements to repurchase:
2016	$	341,998	$	-	$	341,998	$	(1,632)	$	(340,047)	$	319
2015		332,329		-		332,329		(2,909)		(329,420)		-

Due to the short duration of Securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of Securities sold under agreements to repurchase as of September 30:
	September 30, 2016
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	38,382	$	-	$	38,382
Government agency issued MBS		289,341		-		289,341
Government agency issued CMO		-		14,275		14,275
Total Securities sold under agreements to repurchase	$	327,723	$	14,275	$	341,998
	September 30, 2015
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	23,812	$	-	$	23,812
Government agency issued CMO		297,578		10,939		308,517
Total Securities sold under agreements to repurchase	$	321,390	$	10,939	$	332,329

XML

Fair Value Of Assets And Liabilities

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Of Assets And Liabilities

Note 16 – Fair Value of Assets & Liabilities

FHN groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. This hierarchy requires FHN to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are:

• Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.
• Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
• Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques.

Transfers between fair value levels are recognized at the end of the fiscal quarter in which the associated change in inputs occurs.

Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016:
			September 30, 2016
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	110,538	$	-	$	110,538
	Government agency issued MBS			-		478,756		-		478,756
	Government agency issued CMO			-		266,284		-		266,284
	Other U.S. government agencies			-		121,460		-		121,460
	States and municipalities			-		93,448		-		93,448
	Corporate and other debt			-		246,153		5		246,158
	Equity, mutual funds, and other			-		1,112		-		1,112
		Total trading securities - fixed income		-		1,317,751		5		1,317,756
Trading securities - mortgage banking				-		-		2,779		2,779
Loans held-for-sale				-		214		22,536		22,750
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		1,940,357		-		1,940,357
	Government agency issued CMO			-		1,901,144		-		1,901,144
	Equity, mutual funds, and other			24,636		-		-		24,636
		Total securities available-for-sale		24,636		3,841,601		-		3,866,237
Other assets:
	Mortgage servicing rights			-		-		1,246		1,246
	Deferred compensation assets			31,892		-		-		31,892
	Derivatives, forwards and futures			11,759		-		-		11,759
	Derivatives, interest rate contracts			-		148,972		-		148,972
	Derivatives, other			-		5		-		5
		Total other assets		43,651		148,977		1,246		193,874
		Total assets	$	68,287	$	5,308,543	$	26,566	$	5,403,396
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	508,895	$	-	$	508,895
	Government agency issued MBS			-		199		-		199
	Other U.S. government agencies			-		7,934		-		7,934
	States and municipalities			-		143		-		143
	Corporate and other debt			-		185,055		-		185,055
		Total trading liabilities - fixed income		-		702,226		-		702,226
Other liabilities:
	Derivatives, forwards and futures			10,924		-		-		10,924
	Derivatives, interest rate contracts			-		127,352		-		127,352
	Derivatives, other			-		13		6,540		6,553
		Total other liabilities		10,924		127,365		6,540		144,829
		Total liabilities	$	10,924	$	829,591	$	6,540	$	847,055

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2015:
			September 30, 2015
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	97,211	$	-	$	97,211
	Government agency issued MBS			-		265,290		-		265,290
	Government agency issued CMO			-		283,927		-		283,927
	Other U.S. government agencies			-		113,739		-		113,739
	States and municipalities			-		65,255		-		65,255
	Trading Loans			-		16,943		-		16,943
	Corporate and other debt			-		381,470		5		381,475
	Equity, mutual funds, and other			-		742		-		742
		Total trading securities - fixed income		-		1,224,577		5		1,224,582
Trading securities - mortgage banking				-		-		4,598		4,598
Loans held-for-sale				-		-		26,789		26,789
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		945,951		-		945,951
	Government agency issued CMO			-		2,535,436		-		2,535,436
	Other U.S. government agencies			-		-		1,446		1,446
	States and municipalities			-		7,655		1,500		9,155
	Equity, mutual funds, and other			25,840		-		-		25,840
		Total securities available-for-sale		25,840		3,489,142		2,946		3,517,928
Other assets:
	Mortgage servicing rights			-		-		1,993		1,993
	Deferred compensation assets			25,972		-		-		25,972
	Derivatives, forwards and futures			16,335		-		-		16,335
	Derivatives, interest rate contracts			-		136,121		-		136,121
	Derivatives, other			-		92		-		92
		Total other assets		42,307		136,213		1,993		180,513
		Total assets	$	68,147	$	4,849,932	$	36,331	$	4,954,410
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	478,759	$	-	$	478,759
	Government agency issued MBS			-		1,481		-		1,481
	Other U.S. government agencies			-		6,482		-		6,482
	Corporate and other debt			-		301,841		-		301,841
		Total trading liabilities - fixed income		-		788,563		-		788,563
Other liabilities:
	Derivatives, forwards and futures			15,921		-		-		15,921
	Derivatives, interest rate contracts			-		120,234		-		120,234
	Derivatives, other			-		-		4,810		4,810
		Total other liabilities		15,921		120,234		4,810		140,965
		Total liabilities	$	15,921	$	908,797	$	4,810	$	929,528

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the three months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:
			Three Months Ended September 30, 2016
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on July 1, 2016			$	2,826			$	25,738			$	1,500		$	1,406		$	(6,835)
	Total net gains/(losses) included in:
		Net income		304				1,604				-			-			(4)
	Purchases			-				198				-			-			-
	Settlements			(346)				(2,146)				(1,500)			(160)			299
	Net transfers into/(out of) Level 3			-				(2,858)	(b)			-			-			-
Balance on September 30, 2016			$	2,784			$	22,536			$	-		$	1,246		$	(6,540)
Net unrealized gains/(losses) included in net income			$	244	(a)		$	1,604	(a)		$	-		$	-		$	(4)	(c)

			Three Months Ended September 30, 2015
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on July 1, 2015			$	4,929			$	26,525			$	3,060		$	2,158		$	(4,810)
	Total net gains/(losses) included in:
		Net income		57				803				-			-			(302)
		Other comprehensive income/(loss)		-				-				(16)			-			-
	Purchases			-				1,902				-			-			-
	Settlements			(383)				(1,664)				(98)			(165)			302
	Net transfers into/(out of) Level 3			-				(777)	(b)			-			-			-
Balance on September 30, 2015			$	4,603			$	26,789			$	2,946		$	1,993		$	(4,810)
Net unrealized gains/(losses) included in net income			$	57	(a)		$	803	(a)		$	-		$	-		$	(302)	(c)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the nine months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:
			Nine Months Ended September 30, 2016
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on January 1, 2016			$	4,377			$	27,418			$	1,500		$	1,841		$	(4,810)
	Total net gains/(losses) included in:
		Net income		506				2,375				-			31			(2,627)
	Purchases			-				673				-			-			-
	Sales			-				-				-			(205)			-
	Settlements			(2,099)				(4,643)				(1,500)			(421)			897
	Net transfers into/(out of) Level 3			-				(3,287)	(b)			-			-			-
Balance on September 30, 2016			$	2,784			$	22,536			$	-		$	1,246		$	(6,540)
Net unrealized gains/(losses) included in net income			$	324	(a)		$	2,375	(a)		$	-		$	-		$	(2,627)	(c)

			Nine Months Ended September 30, 2015
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on January 1, 2015			$	5,642			$	27,910			$	3,307		$	2,517		$	(5,240)
	Total net gains/(losses) included in:
		Net income		296				2,193				-			-			(466)
		Other comprehensive income/(loss)		-				-				(44)			-			-
	Purchases			-				3,080				-			-			-
	Settlements			(1,335)				(4,483)				(317)			(524)			896
	Net transfers into/(out of) Level 3			-				(1,911)	(b)			-			-			-
Balance on September 30, 2015			$	4,603			$	26,789			$	2,946		$	1,993		$	(4,810)
Net unrealized gains/(losses) included in net income			$	296	(a)		$	2,193	(a)		$	-		$	-		$	(466)	(c)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at September 30, 2016 and 2015, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

									Three Months Ended		Nine Months Ended
	Carrying value at September 30, 2016								September 30, 2016		September 30, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)		Net gains/(losses)
Loans held-for-sale - first mortgages	$	-	$	-	$	671	$	671	$	10	$	17
Loans, net of unearned income (a)		-		-		31,797		31,797		461		(3,249)
Real estate acquired by foreclosure (b)		-		-		13,678		13,678		(711)		(1,561)
Other assets (c)		-		-		28,285		28,285		(788)		(2,325)
									$	(1,028)	$	(7,118)

									Three Months Ended		Nine Months Ended
	Carrying value at September 30, 2015								September 30, 2015		September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)		Net gains/(losses)
Loans held-for-sale - first mortgages	$	-	$	-	$	726	$	726	$	10	$	48
Loans, net of unearned income (a)		-		-		27,898		27,898		1,195		2,729
Real estate acquired by foreclosure (b)		-		-		25,872		25,872		(706)		(2,366)
Other assets (c)		-		-		27,825		27,825		(439)		(1,383)
									$	60	$	(972)

• Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
• Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments accounted for under the equity method.

In first quarter 2016, FHN’s Regional Banking segment recognized $3.7 million of impairments on long-lived assets associated with efforts to more efficiently utilize its bank branch locations. The affected branch locations represented a mixture of owned and leased sites. The fair values of owned sites were determined using estimated sales prices from appraisals less estimated costs to sell. The fair values of leased sites were determined using a discounted cash flow approach, based on the revised estimated useful lives of the related assets. Both measurement methodologies are considered Level 3 valuations.

Level 3 Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of September 30, 2016 and 2015:
(Dollars in Thousands)
	Fair Value at
Level 3 Class	September 30, 2016		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	2,779	Discounted cash flow	Prepayment speeds	34% - 46%
				Discount rate	30% - 57%
Loans held-for-sale - residential real estate		23,207	Discounted cash flow	Prepayment speeds - First mortgage	2% - 20%
				Prepayment speeds - HELOC	5% - 15%
				Foreclosure losses	47% - 57%
				Loss severity trends - First mortgage	5% - 70% of UPB
				Loss severity trends - HELOC	35% - 100% of UPB
				Draw rate - HELOC	5% - 12%
Derivative liabilities, other		6,540	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	27 - 57 months
Loans, net of unearned income (a)		31,797	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		13,678	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		28,285	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

• Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
• Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments accounted for under the equity method.

(Dollars in Thousands)
	Fair Value at
Level 3 Class	September 30, 2015		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	4,598	Discounted cash flow	Prepayment speeds	43% - 45%
				Discount rate	6% - 59%
Loans held-for-sale - residential real estate		27,515	Discounted cash flow	Prepayment speeds - First mortgage	2% - 20%
				Prepayment speeds - HELOC	5% - 15%
				Foreclosure Losses	45% - 55%
				Loss severity trends - First mortgage	20% - 70% of UPB
				Loss severity trends - HELOC	35% - 100% of UPB
				Draw Rate - HELOC	5% - 12%
Derivative liabilities, other		4,810	Discounted cash flow	Visa covered litigation resolution amount	$4.5 billion - $5.5 billion
				Probability of resolution scenarios	5% - 25%
				Time until resolution	6 - 42 months
Loans, net of unearned income (a)		27,898	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction Values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		25,872	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		27,825	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

• Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
• Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments accounted for under the equity method.

Trading securities-mortgage.Prepayment rates and credit spreads (part of the discount rate) are significant unobservable inputs used in the fair value measurement of FHN’s mortgage trading securities which include interest-only strips and principal-only strips. Subordinated bonds were also included in mortgage trading securities prior to their payoff in first quarter 2016. Increases in prepayment rates and credit spreads in isolation would result in significantly lower fair value measurements for the associated assets. Conversely, decreases in prepayment rates and credit spreads in isolation would result in significantly higher fair value measurements for the associated assets. Generally, when market interest rates decline and other factors favorable to prepayments occur, there is a corresponding increase in prepayment rates as customers are expected to refinance existing mortgages under more favorable interest rate terms. Generally, changes in discount rates directionally mirror the changes in market interest rates. FHN’s Corporate Accounting Department monitors changes in the fair value of these securities monthly.

Loans held-for-sale. Foreclosure losses and prepayment rates are significant unobservable inputs used in the fair value measurement of FHN’s residential real estate loans held-for-sale. Loss severity trends are also assessed to evaluate the reasonableness of fair value estimates resulting from discounted cash flows methodologies as well as to estimate fair value for newly repurchased loansand loans that are near foreclosure. Significant increases (decreases) in any of these inputs in isolation would result in significantly lower (higher) fair value measurements. Draw rates are an additional significant unobservable input for HELOCs.Increases (decreases) in the draw rate estimates for HELOCs would increase (decrease) their fair value.All observable and unobservable inputs are re-assessed quarterly. Fair value measurements are reviewed at least quarterly by FHN’s Corporate Accounting Department.

Derivative liabilities.In conjunction with the sales of portions of its Visa Class B shares, FHN and the purchaser entered into derivative transactions whereby FHN will make, or receive, cash payments whenever the conversion ratio of the Visa Class B shares into Visa Class A shares is adjusted. FHN uses a discounted cash flow methodology in order to estimate the fair value of FHN’s derivative liabilities associated with its prior sales of Visa Class B shares. The methodology includes estimation of both the resolution amount for Visa’s Covered Litigation matters as well as the length of time until the resolution occurs. Significant increases (decreases) in either of these inputs in isolation would result in significantly higher (lower) fair value measurements for the derivative liabilities. Additionally, FHN performs a probability weighted multiple resolution scenario to calculate the estimated fair value of these derivative liabilities. Assignment of higher (lower) probabilities to the larger potential resolution scenarios would result in an increase (decrease) in the estimated fair value of the derivative liabilities. Since this estimation process requires application of judgment in developing significant unobservable inputs used to determine the possible outcomes and the probability weighting assigned to each scenario, these derivatives have been classified within Level 3 in fair value measurements disclosures. The valuation inputs and process are discussed with senior and executive management when significant events affecting the estimate of fair value occur. Inputs are compared to information obtained from the public issuances and filings of Visa, Inc. as well as public information released by other participants in the applicable litigation matters.

Loans, net of unearned income and Real estate acquired by foreclosure. Collateral-dependent loans and Real estate acquired by foreclosure are primarily valued using appraisals based on sales of comparable properties in the same or similar markets. Multiple appraisal firms are utilized to ensure that estimated values are consistent between firms. This process occurs within FHN’s Credit Risk Management (commercial) and Default Servicing functions (primarily consumer) and the Credit Risk Management Committee reviews valuation methodologies and loss information for reasonableness. Back testing is performed during the year through comparison to ultimate disposition values and is reviewed quarterly within the Credit Risk Management function. Other collateral (receivables, inventory, equipment, etc.) is valued through borrowing base certificates, financial statements and/or auction valuations. These valuations are discounted based on the quality of reporting, knowledge of the marketability/collectability of the collateral and historical disposition rates.

Other assets – tax credit investments.The estimated fair value of tax credit investments accounted for under the equity method is generally determined in relation to the yield (i.e., future tax credits to be received) an acquirer of these investments would expect in relation to the yields experienced on current new issue and/or secondary market transactions. Thus, as tax credits are recognized, the future yield to a market participant is reduced, resulting in consistent impairment of the individual investments. Individual investments are reviewed for impairment quarterly, which may include the consideration of additional marketability discounts related to specific investments which typically includes consideration of the underlying property’s appraised value. Unusual valuation adjustments and the associated triggering events are discussed with senior and executive management when appropriate. A portfolio review is conducted annually, with the assistance of a third party, to assess the reasonableness of current valuations.

Fair Value Option

FHN elected the fair value option on a prospective basis for almost all types of mortgage loans originated for sale purposes under the Financial Instruments Topic (“ASC 825”). FHN determined that the election reduced certain timing differences and better matched changes in the value of such loans with changes in the value of derivatives and forward delivery commitments used as economic hedges for these assets at the time of election.

Repurchased loans are recognized within loans held-for-sale at fair value at the time of repurchase, which includes consideration of the credit status of the loans and the estimated liquidation value. FHN has elected to continue recognition of these loans at fair value in periods subsequent to reacquisition. Due to the credit-distressed nature of the vast majority of repurchased loans and the related loss severities experienced upon repurchase, FHN believes that the fair value election provides a more timely recognition of changes in value for these loans that occur subsequent to repurchase. Absent the fair value election, these loans would be subject to valuation at the LOCOM value, which would prevent subsequent values from exceeding the initial fair value, determined at the time of repurchase, but would require recognition of subsequent declines in value. Thus, the fair value election provides for a more timely recognition of any potential future recoveries in asset values while not affecting the requirement to recognize subsequent declines in value.

The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
		September 30, 2016
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	22,750	$	34,241		$	(11,491)
	Nonaccrual loans		6,638		12,850			(6,212)
	Loans 90 days or more past due and still accruing		22		26			(4)
		September 30, 2015
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	26,789	$	41,350		$	(14,561)
	Nonaccrual loans		7,206		13,712			(6,506)
	Loans 90 days or more past due and still accruing		2,677		3,822			(1,145)

Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
			Three Months Ended				Nine Months Ended
			September 30				September 30
(Dollars in thousands)			2016		2015		2016		2015
Changes in fair value included in net income:
	Mortgage banking noninterest income
		Loans held-for-sale	$	1,604	$	803	$	2,375	$	2,193

For the three months ended September 30, 2016, and 2015, the amounts for residential real estate loans held-for-sale include a gain of $.5 million and a loss of $.2 million, respectively, in pretax earnings that are attributable to changes in instrument-specific credit risk. For the nine months ended September 30, 2016, and 2015, the amounts for loans held-for-sale include gains of $.7 million and $.5 million, respectively, in pretax earnings that are attributable to changes in instrument-specific credit risk. The portion of the fair value adjustments related to credit risk was determined based on estimated default rates and estimated loss severities. Interest income on residential real estate loans held-for-sale measured at fair value is calculated based on the note rate of the loan and is recorded in the interest income section of the Consolidated Condensed Statements of Income as interest on loans held-for-sale.

Determination of Fair Value

In accordance with ASC 820-10-35, fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the Consolidated Condensed Statements of Condition and for estimating the fair value of financial instruments for which fair value is disclosed under ASC 825-10-50.

Short-term financial assets. Federal funds sold, securities purchased under agreements to resell, and interest bearing deposits with other financial institutions and the Federal Reserve are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Trading securities and trading liabilities. Trading securities and trading liabilities are recognized at fair value through current earnings. Trading inventory held for broker-dealer operations is included in trading securities and trading liabilities. Broker-dealer long positions are valued at bid price in the bid-ask spread. Short positions are valued at the ask price. Inventory positions are valued using observable inputs including current market transactions, LIBOR and U.S. treasury curves, credit spreads, and consensus prepayment speeds. Trading loans are valued using observable inputs including current market transactions, swap rates, mortgage rates, and consensus prepayment speeds.

Trading securities also include retained interests in prior securitizations that qualify as financial assets, which include interest-only strips and principal-only strips. Subordinated bonds were included in mortgage trading securities prior to payoff in first quarter 2016. FHN uses inputs including yield curves, credit spreads, and prepayment speeds to determine the fair value of interest-only and principal-only strips.Subordinated bonds are bonds with junior priority and were valued using an internal model which included contractual terms, frequency and severity of loss (credit spreads), prepayment speeds of the underlying collateral, and the yield that a marketparticipant would require.

Securities available-for-sale. Securities available-for-sale includes the investment portfolio accounted for as available-for-sale under ASC 320-10-25, federal bank stock holdings, and short-term investments in mutual funds. Valuations of available-for-sale securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves, consensus prepayment estimates, and credit spreads. When available, broker quotes are used to support these valuations. Prior to disposition in fourth quarter 2015, certain government agency debt obligations with limited trading activity were valued using a discounted cash flow model that incorporated a combination of observable and unobservable inputs. Primary observable inputs included contractual cash flows and the treasury curve. Significant unobservable inputs included estimated trading spreads and estimated prepayment speeds.

Investments in the stock of the Federal Reserve Bank and Federal Home Loan Banks are recognized at historical cost in the Consolidated Condensed Statements of Condition which is considered to approximate fair value. Short-term investments in mutual funds are measured at the funds’ reported closing net asset values. Investments in equity securities are valued using quoted market prices.

Securities held-to-maturity. Securities held-to-maturity reflects debt securities for which management has the positive intent and ability to hold to maturity. To the extent possible, valuations of held-to-maturity securities are performed using observable inputs obtained from market transactions in similar securities. Typical inputs include LIBOR and U.S. treasury curves and credit spreads. Debt securities with limited trading activity are valued using a discounted cash flow model that incorporates a combination of observable and unobservable inputs. Primary observable inputs include contractual cash flows, the treasury curve and credit spreads from similar instruments. Significant unobservable inputs include estimated credit spreads for individual issuers and instruments as well as prepayment speeds, as applicable.

Loans held-for-sale. Residential real estate loans held-for-sale are valued using current transaction prices and/or values on similar assets when available, including committed bids for specific loans or loan portfolios. Uncommitted bids may be adjusted based on other available market information. For all other loans FHN determines the fair value of residential real estate loans held-for-sale using a discounted cash flow model which incorporates both observable and unobservable inputs. Inputs include current mortgage rates for similar products, estimated prepayment rates, foreclosure losses, and various loan performance measures (delinquency, LTV, credit score). Adjustments for delinquency and other differences in loan characteristics are typically reflected in the model’s discount rates. Loss severity trends and the value of underlying collateral are also considered in assessing the appropriate fair value for severely delinquent loans and loans in foreclosure. The valuation of HELOCs also incorporates estimates of loan draw rates as well as estimated cancellation rates for loans expected to become delinquent.

Loans held-for-sale also include loans made by the Small Business Administration (“SBA”), which are accounted for at LOCOM. The fair value of SBA loans is determined using an expected cash flow model that utilizes observable inputs such as the spread between LIBOR and prime rates, consensus prepayment speeds, and the treasury curve. The fair value of other non-residential real estate loans held-for-sale is approximated by their carrying values based on current transaction values.

Loans, net of unearned income. Loans, net of unearned income are recognized at the amount of funds advanced, less charge-offs and an estimation of credit risk represented by the allowance for loan losses. The fair value estimates for disclosure purposes differentiate loans based on their financial characteristics, such as product classification, vintage, loan category, pricing features, and remaining maturity.

The fair value of floating rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is considered to approximate book value due to the monthly repricing for commercial and consumer loans, with the exception of floating rate 1-4 family residential mortgage loans which reprice annually and will lag movements in market rates. The fair value for floating rate 1-4 family mortgage loans is calculated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the floating rate 1-4 family residential mortgage portfolio.

The fair value of fixed rate loans is estimated through comparison to recent market activity in loans of similar product types, with adjustments made for differences in loan characteristics. In situations where market pricing inputs are not available, fair value is estimated by discounting future cash flows to their present value. Future cash flows are discounted to their present value by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same time period. Prepayment assumptions based on historical prepayment speeds and industry speeds for similar loans have been applied to the fixed rate mortgage and installment loan portfolios.

For all loan portfolio classes, adjustments are made to reflect liquidity or illiquidity of the market. Such adjustments reflect discounts that FHN believes are consistent with what a market participant would consider in determining fair value given current market conditions.

Individually impaired loans are measured using either a discounted cash flow methodology or the estimated fair value of the underlying collateral less costs to sell, if the loan is considered collateral-dependent. In accordance with accounting standards, the discounted cash flow analysis utilizes the loan’s effective interest rate for discounting expected cash flow amounts. Thus, this analysis is not considered a fair value measurement in accordance with ASC 820. However, the results of this methodology are considered to approximate fair value for the applicable loans. Expected cash flows are derived from internally-developed inputs primarily reflecting expected default rates on contractual cash flows. For loans measured using the estimated fair value of collateral less costs to sell, fair value is estimated using appraisals of the collateral. Collateral values are monitored and additional write-downs are recognized if it is determined that the estimated collateral values have declined further. Estimated costs to sell are based on current amounts of disposal costs for similar assets. Carrying value is considered to reflect fair value for these loans.

Mortgage servicing rights. FHN recognizes all classes of MSR at fair value. In third quarter 2013, FHN agreed to sell substantially all of its remaining legacy mortgage servicing. Since that time FHN has used the price in the definitive agreement, as adjusted for the portion of pricing that was not specific to the MSR, as a third-party pricing source in the valuation of the remaining MSR.

Derivative assets and liabilities. The fair value for forwards and futures contracts is based on current transactions involving identical securities. Futures contracts are exchange-traded and thus have no credit risk factor assigned as the risk of non-performance is limited to the clearinghouse used.

Valuations of other derivatives (primarily interest rate related swaps, swaptions, caps, and collars) are based on inputs observed in active markets for similar instruments. Typical inputs include the LIBOR curve, Overnight Indexed Swap ("OIS") curve, option volatility, and option skew. In measuring the fair value of these derivative assets and liabilities, FHN has elected to consider credit risk based on the net exposure to individual counterparties. Credit risk is mitigated for these instruments through the use of mutual margining and master netting agreements as well as collateral posting requirements. Any remaining credit risk related to interest rate derivatives is considered in determining fair value through evaluation of additional factors such as customer loan grades and debt ratings. Foreign currency related derivatives also utilize observable exchange rates in the determination of fair value. The determination of fair value for FHN’s derivative liabilities associated with its prior sales of Visa Class B shares are classified within Level 3 in the fair value measurements disclosure as previously discussed in the unobservable inputs discussion.

Real estate acquired by foreclosure. Real estate acquired by foreclosure primarily consists of properties that have been acquired in satisfaction of debt. These properties are carried at the lower of the outstanding loan amount or estimated fair value less estimated costs to sell the real estate. Estimated fair value is determined using appraised values with subsequent adjustments for deterioration in values that are not reflected in the most recent appraisal.

Nonearning assets. For disclosure purposes, nonearning financial assets include cash and due from banks, accrued interest receivable, and fixed income receivables. Due to the short-term nature of cash and due from banks, accrued interest receivable, and fixed income receivables, the fair value is approximated by the book value.

Other assets. For disclosure purposes, other assets consist of tax credit investments and deferred compensation assets that are considered financial assets. Tax credit investments accounted for under the equity method are written down to estimated fair value quarterly based on the estimated value of the associated tax credits which incorporates estimates of required yield for hypothetical investors. The fair value of all other tax credit investments is estimated using recent transaction information with adjustments for differences in individual investments. Deferred compensation assets are recognized at fair value, which is based on quoted prices in active markets.

Defined maturity deposits. The fair value of these deposits is estimated by discounting future cash flows to their present value. Future cash flows are discounted by using the current market rates of similar instruments applicable to the remaining maturity. For disclosure purposes, defined maturity deposits include all certificates of deposit and other time deposits.

Undefined maturity deposits. In accordance with ASC 825, the fair value of these deposits is approximated by the book value. For the purpose of this disclosure, undefined maturity deposits include demand deposits, checking interest accounts, savings accounts, and money market accounts.

Short-term financial liabilities. The fair value of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings are approximated by the book value. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization.

Term borrowings. The fair value of term borrowings is based on quoted market prices or dealer quotes for the identical liability when traded as an asset. When pricing information for the identical liability is not available, relevant prices for similar debt instruments are used with adjustments being made to the prices obtained for differences in characteristics of the debt instruments. If no relevant pricing information is available, the fair value is approximated by the present value of the contractual cash flows discounted by the investor’s yield which considers FHN’s and FTBNA’s debt ratings.

Other noninterest-bearing liabilities. For disclosure purposes, other noninterest-bearing financial liabilities include accrued interest payable and fixed income payables. Due to the short-term nature of these liabilities, the book value is considered to approximate fair value.

Loan commitments. Fair values of these commitments are based on fees charged to enter into similar agreements taking into account the remaining terms of the agreements and the counterparties’ credit standing.

Other commitments. Fair values of these commitments are based on fees charged to enter into similar agreements.

The following fair value estimates are determined as of a specific point in time utilizing various assumptions and estimates. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, reduces the comparability of fair value disclosures between financial institutions. Due to market illiquidity, the fair values for loans, net of unearned income, loans held-for-sale, and term borrowings as of September 30, 2016 and 2015, involve the use of significant internally-developed pricing assumptions for certain components of these line items. The assumptions and valuations utilized for this disclosure are considered to reflect inputs that market participants would use in transactions involving these instruments as of the measurement date. The valuations of legacy assets, particularly consumer loans within the non-strategic segment and TRUP loans, are influenced by changes in economic conditions since origination and risk perceptions of the financial sector. These considerations affect the estimate of a potential acquirer’s cost of capital and cash flow volatility assumptions from these assets and the resulting fair value measurements may depart significantly from FHN’s internal estimates of the intrinsic value of these assets.

Assets and liabilities that are not financial instruments have not been included in the following table such as the value of long-term relationships with deposit and trust customers, premises and equipment, goodwill and other intangibles, deferred taxes, and certain other assets and other liabilities. Additionally, these measurements are solely for financial instruments as of the measurement date and do not consider the earnings potential of our various business lines. Accordingly, the total of the fair value amounts does not represent, and should not be construed to represent, the underlying value of FHN.

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of September 30, 2016 and 2015.

			September 30, 2016
			Book		Fair Value
(Dollars in thousands)			Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
	Commercial:
		Commercial, financial and industrial	$	12,031,432	$	-	$	-	$	11,937,281	$	11,937,281
		Commercial real estate		2,033,175		-		-		2,009,820		2,009,820
	Consumer:
		Consumer real estate		4,525,136		-		-		4,455,675		4,455,675
		Permanent mortgage		419,511		-		-		410,302		410,302
		Credit card & other		344,976		-		-		345,971		345,971
Total loans, net of unearned income and allowance for loan losses				19,354,230		-		-		19,159,049		19,159,049
Short-term financial assets:
	Interest-bearing cash			219,834		219,834		-		-		219,834
	Federal funds sold			27,097		-		27,097		-		27,097
	Securities purchased under agreements to resell			802,815		-		802,815		-		802,815
Total short-term financial assets				1,049,746		219,834		829,912		-		1,049,746
Trading securities (a)				1,320,535		-		1,317,751		2,784		1,320,535
Loans held-for-sale				155,215		-		46,681		108,534		155,215
Securities available-for-sale (a) (b)				4,027,594		24,636		3,841,601		161,357		4,027,594
Securities held-to-maturity				14,340		-		-		15,042		15,042
Derivative assets (a)				160,736		11,759		148,977		-		160,736
Other assets:
	Tax credit investments			90,824		-		-		89,879		89,879
	Deferred compensation assets			31,892		31,892		-		-		31,892
Total other assets				122,716		31,892		-		89,879		121,771
Nonearning assets:
	Cash & due from banks			327,639		327,639		-		-		327,639
	Fixed income receivables			91,997		-		91,997		-		91,997
	Accrued interest receivable			64,511		-		64,511		-		64,511
Total nonearning assets				484,147		327,639		156,508		-		484,147
Total assets			$	26,689,259	$	615,760	$	6,341,430	$	19,536,645	$	26,493,835
Liabilities:
Deposits:
	Defined maturity		$	1,325,079	$	-	$	1,334,178	$	-	$	1,334,178
	Undefined maturity			20,249,101		-		20,249,101		-		20,249,101
Total deposits				21,574,180		-		21,583,279		-		21,583,279
Trading liabilities (a)				702,226		-		702,226		-		702,226
Short-term financial liabilities:
	Federal funds purchased			538,284		-		538,284		-		538,284
	Securities sold under agreements to repurchase			341,998		-		341,998		-		341,998
	Other short-term borrowings			792,736		-		792,736		-		792,736
Total short-term financial liabilities				1,673,018		-		1,673,018		-		1,673,018
Term borrowings:
	Real estate investment trust-preferred			46,015		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		18,240		18,240
	Borrowings secured by residential real estate			26,062		-		-		24,759		24,759
	Other long term borrowings			975,574		-		965,124		-		965,124
Total term borrowings				1,065,651		-		965,124		92,349		1,057,473
Derivative liabilities (a)				144,829		10,924		127,365		6,540		144,829
Other noninterest-bearing liabilities:
	Fixed income payables			68,897		-		68,897		-		68,897
	Accrued interest payable			15,376		-		15,376		-		15,376
Total other noninterest-bearing liabilities				84,273		-		84,273		-		84,273
Total liabilities			$	25,244,177	$	10,924	$	25,135,285	$	98,889	$	25,245,098

• Classes are detailed in the recurring and nonrecurring measurement tables.
• Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

			September 30, 2015
			Book		Fair Value
(Dollars in thousands)			Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
	Commercial:
		Commercial, financial and industrial	$	9,538,832	$	-	$	-	$	9,473,702	$	9,473,702
		Commercial real estate		1,462,696		-		-		1,447,848		1,447,848
	Consumer:
		Consumer real estate		4,731,464		-		-		4,535,337		4,535,337
		Permanent mortgage		443,817		-		-		413,188		413,188
		Credit card & other		337,869		-		-		339,527		339,527
Total loans, net of unearned income and allowance for loan losses				16,514,678		-		-		16,209,602		16,209,602
Short-term financial assets:
	Interest-bearing cash			596,689		596,689		-		-		596,689
	Federal funds sold			64,438		-		64,438		-		64,438
	Securities purchased under agreements to resell			793,098		-		793,098		-		793,098
Total short-term financial assets				1,454,225		596,689		857,536		-		1,454,225
Trading securities (a)				1,229,180		-		1,224,577		4,603		1,229,180
Loans held-for-sale (a)				124,308		-		-		124,308		124,308
Securities available-for-sale (a) (b)				3,673,641		25,840		3,489,142		158,659		3,673,641
Securities held-to-maturity				4,313		-		-		5,404		5,404
Derivative assets (a)				152,548		16,335		136,213		-		152,548
Other assets:
	Tax credit investments			98,341		-		-		58,030		58,030
	Deferred compensation assets			25,972		25,972		-		-		25,972
Total other assets				124,313		25,972		-		58,030		84,002
Nonearning assets:
	Cash & due from banks			256,342		256,342		-		-		256,342
	Fixed income receivables			83,547		-		83,547		-		83,547
	Accrued interest receivable			65,956		-		65,956		-		65,956
Total nonearning assets				405,845		256,342		149,503		-		405,845
Total assets			$	23,683,051	$	921,178	$	5,856,971	$	16,560,606	$	23,338,755
Liabilities:
Deposits:
	Defined maturity		$	1,033,896	$	-	$	1,039,007	$	-	$	1,039,007
	Undefined maturity			17,831,324		-		17,831,324		-		17,831,324
Total deposits				18,865,220		-		18,870,331		-		18,870,331
Trading liabilities (a)				788,563		-		788,563		-		788,563
Short-term financial liabilities:
	Federal funds purchased			520,992		-		520,992		-		520,992
	Securities sold under agreements to repurchase			332,329		-		332,329		-		332,329
	Other short-term borrowings			99,887		-		99,887		-		99,887
Total short-term financial liabilities				953,208		-		953,208		-		953,208
Term borrowings:
	Real estate investment trust-preferred			45,947		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		18,158		18,158
	Borrowings secured by residential real estate			48,491		-		-		41,848		41,848
	Other long term borrowings			1,227,502		-		1,214,410		-		1,214,410
Total term borrowings				1,339,940		-		1,214,410		109,356		1,323,766
Derivative liabilities (a)				140,965		15,921		120,234		4,810		140,965
Other noninterest-bearing liabilities:
	Fixed income payables			95,346		-		95,346		-		95,346
	Accrued interest payable			25,358		-		25,358		-		25,358
Total other noninterest-bearing liabilities				120,704		-		120,704		-		120,704
Total liabilities			$	22,208,600	$	15,921	$	22,067,450	$	114,166	$	22,197,537

Certain previously reported amounts have been reclassified to agree with current presentation.

• Classes are detailed in the recurring and nonrecurring measurement tables.
• Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million.

	Contractual Amount				Fair Value
(Dollars in thousands)	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Unfunded Commitments:
Loan commitments	$	8,012,345	$	7,962,431	$	1,998	$	2,694
Standby and other commitments		287,499		281,740		3,867		4,424

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Financial Information (Policy)

9 Months Ended

Sep. 30, 2016

Financial Information [Abstract]

Basis Of Accounting

Basis of Accounting. The unaudited interim consolidated condensed financial statements of First Horizon National Corporation (“FHN”), including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. In the opinion of management, all necessary adjustments have been made for a fair presentation of financial position and results of operations for the periods presented. These adjustments are of a normal recurring nature unless otherwise disclosed in this Quarterly Report on Form 10-Q. The operating results for the interim 2016 periods are not necessarily indicative of the results that may be expected going forward. For further information, refer to the audited consolidated financial statements in Exhibit 13 to FHN’s Annual Report on Form 10-K for the year ended December 31, 2015.

Summary of Accounting Changes

Summary of Accounting Changes.Effective January 1, 2016, FHN early adopted the provisions ofASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, on a prospective basis. ASU 2016-05 clarifies that a change in the counterparty of a derivative instrument that has been designated as the hedging instrument in an accounting hedge relationship does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. FHN considers the revised guidance to better reflect the nature of hedge accounting relationships by clarifying that, when considered solely, the counterparty is not a critical term in a hedge relationship. Because FHN has applied specific SEC staff guidance for novation (to facilitate central clearing requirements) of derivatives to prior and existing accounting hedge relationships, adoption of ASU 2016-05 had no effect on FHN.

Effective January 1, 2016, FHN early adopted the provisions of ASU 2016-06, “Contingent Put and Call Options in Debt Instruments”, which resolves diversity in practice for the bifurcation assessment when a contingent put or call option is embedded within a hybrid debt instrument. ASU 2016-06 clarifies that an entity is not required to assess whether the triggering event is related to interest rate or credit risks when performing the bifurcation analysis. FHN’s existing bifurcation assessment process conforms to the methodology outlined in ASU 2016-06.

Effective January 1, 2016, FHN adopted the provisions of ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition in determining expense recognition for the award. Thus, compensation cost is recognized over the requisite service period based on the probability of achievement of the performance condition. Expense is adjusted after the requisite service period for changes in the probability of achievement. The adoption of ASU 2014-12 had no effect on FHN.

Effective January 1, 2016, FHN adopted the provisions of ASU 2015-02, “Amendments to the Consolidation Analysis.” ASU 2015-02 revises current consolidation guidance to modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities. ASU 2015-02 also eliminates the presumption that a general partner should consolidate a limited partnership, revises the consolidation analysis for reporting entities that have fee arrangements and related party relationships with variable interest entities, and provides a scope exception for entities with interests in registered money market funds. FHN has evaluated the provisions of ASU 2015-02 on its consolidation assessments and there was not a significant effect upon adoption.

Effective January 1, 2016, FHN adopted the provisions of ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented as a direct reduction from the carrying value of that debt liability, consistent with debt discounts. ASU 2015-03 requires application on a retrospective basis, with prior periods revised to reflect the effects of adoption. Consistent with prior requirements, FHN previously classified debt issuance costs within Other assets in the Consolidated Condensed Statements of Condition. The adoption of ASU 2015-03 had no effect on FHN’s recognition of interest expense. The effects of the retrospective application of the change in presentation of debt issuance costs are summarized in the table below.

			As of September 30		As of December 31
(Dollars in thousands)			2015		2015		2014
Increase/(decrease) to previously reported Consolidated Statements of Condition amounts
	Other assets	$	(1,246)	$	(2,499)	$	(2,764)
	Term Borrowings		(1,246)		(2,499)		(2,764)

Accounting Changes Issued but Not Currently Effective

Accounting Changes Issued but Not Currently Effective

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 does not change revenue recognition for financial instruments. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is accomplished through a five-step recognition framework involving 1) the identification of contracts with customers, 2) identification of performance obligations, 3) determination of the transaction price, 4) allocation of the transaction price to the performance obligations and 5) recognition of revenue as performance obligations are satisfied. Additionally, qualitative and quantitative information is required for disclosure regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In February 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations,” which provides additional guidance on whether an entity should recognize revenue on a gross or net basis, based on which party controls the specified good or service before that good or service is transferred to a customer.In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the original guidance included in ASU 2014-09 for identification of the goods or services provided to customers and enhances the implementation guidance forlicensing arrangements.ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” was issued in May 2016 to provide additional guidance for the implementation and application of ASU 2014-09. The effective date of these ASUs has been deferred to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, and associated interim periods. Transition to the new requirements may be made by retroactively revising prior financial statements (with certain practical expedients permitted) or by a cumulative effect through retained earnings. If the latter option is selected, additional disclosures are required for comparability. FHN is evaluating the effects of these ASUs on its revenue recognition practices.

In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such events or conditions exist, additional disclosures are required and management should evaluate whether its plans sufficiently alleviate the substantial doubt. ASU 2014-15 is effective for the annual period ending after December 15, 2016 and all interim and annual periods thereafter. The provisions of ASU 2014-15 are not anticipated to affect FHN.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes several revisions to the accounting, presentation and disclosure for financial instruments. Equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) are required to be measured at fair value with changes in fair value recognized in net income. An entity may elect to measure equity investments that do not have readily determinable market values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar instruments from the same issuer. ASU 2016-01 also requires a qualitative impairment review for equity investments without readily determinable fair values, with measurement at fair value required if impairment is determined to exist. For liabilities for which fair value has been elected, ASU 2016-01 revises current accounting to record the portion of fair value changes resulting from instrument-specific credit risk within other comprehensive income rather than earnings. Additionally, ASU 2016-01 clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be assessed in combination with all other deferred tax assets rather than being assessed in isolation. ASU 2016-01 also makes several changes to existing fair value presentation and disclosure requirements, including a provision that all disclosures must use an exit price concept in the determination of fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. FHN is evaluating the impact of ASU 2016-01 on its current accounting and disclosure practices.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires a lessee to recognize in its statement of condition a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.ASU 2016-02 leaves lessor accounting largely unchanged from prior standards.For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.All other leases must be classified as financing or operating leases which depends on the relationship of the lessee’s rights to the economic value of the leased asset.For finance leases, interest on the lease liability is recognized separately from amortization of the right-of-use asset in earnings, resulting in higher expense in the earlier portion of the lease term.For operating leases, a single lease cost is calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis.

In transition to ASU 2016-02, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach.The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply, which would result in continuing to account for leases that commence before the effective date in accordance with previous requirements (unless the lease is modified) except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous requirements.ASU 2016-02 also requires expanded qualitative and quantitative disclosuresto assess the amount, timing, and uncertainty of cash flows arising from lease arrangements.ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.FHN is evaluating the impact of ASU 2016-02 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-04, “Recognition of Breakage of Certain Prepaid Stored-Value Products,” which indicates that liabilities related to the sale of prepaid-stored value products are considered financial liabilities and should have a breakage estimate applied for estimated unused funds.ASU 2016-04 does not apply to stored-value products that can only be redeemed for cash, are subject to escheatment or are linked to a segregated bank account.ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.Early adoption is permitted.FHN is evaluating the impact of ASU 2016-04 on its current accounting and disclosure practices.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes several revisions to equity compensation accounting.Under the new guidance all excess tax benefits and deficiencies that occur when an award vests, is exercised, or expires will be recognized in income tax expense as discrete period items.Previously, these transactions were typically recorded directly within equity.Consistent with this change, excess tax benefits and deficiencies will no longer be included within estimated proceeds when performing the treasury stock method for calculation of diluted earnings per share.Excess tax benefits will also be recognized at the time an award is exercised or vests compared to the current requirement to delay recognition until the deduction reduces taxes payable.The presentation of excess tax benefits in the statement of cash flows will shift to an operating activity from the current classification as a financing activity.

ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur rather than the current requirement to estimate forfeitures from inception.Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes onequity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award.Under current guidance, withholding of equity awards in excess of the minimum statutory requirement results in liability classification for the entire award.The related cash remittance by the employer for employee taxes will be treated as a financing activity in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Transition to the new guidance will be accomplished through a combination of retrospective, cumulative-effect adjustment to equity and prospective methodologies.FHN currently estimates that adoption of ASU 2016-09 will result in an increase in tax provision in 2017 between $1.0 million and $2.0 million. The effects on earnings per share calculations and elections to account for forfeitures as incurred are not anticipated to be significant.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises the measurement and recognition of credit losses for assets measured at amortized cost (e.g., held-to-maturity (“HTM”) loans and debt securities) and available-for-sale (“AFS”) debt securities. Under ASU 2016-13, for assets measured at amortized cost, the current expected credit loss (“CECL”) is measured as the difference between amortized cost and the net amount expected to be collected.This represents a departure from existing GAAP as the “incurred loss” methodology for recognizing credit losses delays recognition until it is probable a loss has been incurred. The measurement of current expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Additionally, current disclosures of credit quality indicators in relation to the amortized cost of financing receivables will be further disaggregated by year of origination.ASU 2016-13 leaves the methodology for measuring credit losses on AFS debt securities largely unchanged, with the maximum credit loss representing the difference between amortized cost and fair value.However, such credit losses will be recognized through an allowance for credit losses, which permits recovery of previously recognized credit losses if circumstances change.

ASU 2016-13 also revises the recognition of credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”).For PCD assets, the initial allowance for credit losses is added to the purchase price.Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for PCD assets. Interest income for PCD assets will be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition.Currently, credit losses for purchased credit-impaired assets are included in the initial basis of the assets with subsequent declines in credit resulting in expense while subsequent improvements in credit are reflected as an increase in the future yield from the assets.

The provisions of ASU 2016-13 will be generally adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in the year of adoption.Prospective implementation is required for debt securities for which an other-than-temporary-impairment (“OTTI”) had been previously recognized.Amounts previously recognized in accumulated other comprehensive income (“AOCI”) as of the date of adoption that relate to improvements in cash flows expected to be collected will continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption will be recorded in earnings when received.A prospective transition approach will be used for existing PCD assets where, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses.Thus, an entity will not be required to reassess its purchased financial assets that exist as of the date of adoption to determine whether they would have met at acquisition the new criteria of more-than insignificant credit deterioration since origination.An entity will accrete the remaining noncredit discount (based on the revised amortized cost basis) into interest income at the effective interest rate at the adoption date.

ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.Early adoption is permitted in fiscal years beginning after December 15, 2018.FHN is evaluating the impact of ASU 2016-13 on its current accounting and disclosure practices.Since the CECL methodology encompasses a “life of loan” requirement for the recognition of credit losses, the estimated amount of such losses will be larger than the estimate of probable incurred losses under current standards.The extent of this difference will be dependent upon economic considerations and loan portfolio characteristics at the time of adoption.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies multiple cash flow presentation issues including providing guidance as to classification on the cash flow statement for certain cash receipts and cash payments where diversity in practice exists.ASU 2016-15 also provides an accounting policy election to classify cash flows from an equity method investee under the cumulative earnings approach or the nature of distribution approach.Finally, ASU 2016-15 provides guidance on the presentation of individual cash flows with characteristics of multiple classifications.ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.Early adoption is permitted.The provisions of ASU 2016-15 should be applied using a retrospective transition method to each period presented.FHN is evaluating the impact of ASU 2016-15 on its current cash flow presentation practices.

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Financial Information (Tables)

9 Months Ended

Sep. 30, 2016

Accounting Changes And Error Corrections [Abstract]

Schedule of Accounting Changes

			As of September 30		As of December 31
(Dollars in thousands)			2015		2015		2014
Increase/(decrease) to previously reported Consolidated Statements of Condition amounts
	Other assets	$	(1,246)	$	(2,499)	$	(2,764)
	Term Borrowings		(1,246)		(2,499)		(2,764)

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2016

Investment Securities [Abstract]

Schedule Of FHN's Investment Securities

The following tables summarize FHN’s investment securities on September 30, 2016 and 2015:
	September 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued mortgage-backed securities ("MBS")		1,877,496		62,910		(49)		1,940,357
Government agency issued collateralized mortgage obligations ("CMO")		1,881,795		21,457		(2,108)		1,901,144
Equity and other (a)		185,992		1		-		185,993
Total securities available-for-sale (b)	$	3,945,383	$	84,368	$	(2,157)	$	4,027,594
Securities held-to-maturity:
States and municipalities	$	4,340	$	400	$	-	$	4,740
Corporate bonds		10,000		302		-		10,302
Total securities held-to-maturity	$	14,340	$	702	$	-	$	15,042

• Includes restricted investments in FHLB-Cincinnati stock of $87.9million and FRB stock of $68.6 million. The remainder is money market and cost method investments.
• Includes $3.3billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
U.S. treasuries	$	100	$	-	$	-	$	100
Government agency issued MBS		914,878		31,773		(700)		945,951
Government agency issued CMO		2,514,362		30,281		(9,207)		2,535,436
Other U.S. government agencies		1,443		3		-		1,446
States and municipalities		9,155		-		-		9,155
Equity and other (a)		182,014		-		(461)		181,553
Total securities available-for-sale (b)	$	3,621,952	$	62,057	$	(10,368)	$	3,673,641
Securities held-to-maturity:
States and municipalities	$	4,313	$	1,091	$	-	$	5,404
Total securities held-to-maturity	$	4,313	$	1,091	$	-	$	5,404

• Includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8million. The remainder is money market, mutual funds, and cost method investments.
• Includes $2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

Schedule Of Amortized Cost And Fair Value By Contractual Maturity

The amortized cost and fair value by contractual maturity for the available-for-sale and held-to-maturity securities portfolios on September 30, 2016 are provided below:
		Held-to-Maturity				Available-for-Sale
		Amortized		Fair		Amortized		Fair
(Dollars in thousands)		Cost		Value		Cost		Value
Within 1 year		$	-	$	-	$	100	$	100
After 1 year; within 5 years			-		-		-		-
After 5 years; within 10 years			10,000		10,302		-		-
After 10 years			4,340		4,740		-		-
	Subtotal		14,340		15,042		100		100
Government agency issued MBS and CMO (a)			-		-		3,759,291		3,841,501
Equity and other			-		-		185,992		185,993
Total		$	14,340	$	15,042	$	3,945,383	$	4,027,594

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Schedule Of Gross Gains And Losses On Sale From Available For Sale Portfolio

The table below provides information on gross gains and gross losses from available-for-sale investment securities for the three and nine months ended September 30:
	Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Gross gains on sales of securities	$	-	$	-	$	3,999	$	284
Gross (losses) on sales of securities		-		-		(2,326)		-
Net gain/(loss) on sales of securities (a)		-		-		1,673		284
Net OTTI recorded (b)		(200)		(345)		(200)		(345)
Total securities gain/(loss), net	$	(200)	$	(345)	$	1,473	$	(61)

• There were no sales proceeds for the three months ended September 30, 2016 and 2015; cash proceeds for the nine months ended September 30, 2016 and 2015 were $1.5 million and $.3 million, respectively. Nine months ended September 30, 2016 includes a $1.7million gain from an exchange of approximately $294 million of AFS debt securities.
• OTTI recorded is related to equity securities.

Schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses

The following tables provide information on investments within the available-for-sale portfolio that had unrealized losses as of September 30, 2016 and 2015:
	As of September 30, 2016
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	320,282	$	(631)	$	142,060	$	(1,477)	$	462,342	$	(2,108)
Government agency issued MBS		38,477		(49)		-		-		38,477		(49)
Total temporarily impaired securities	$	358,759	$	(680)	$	142,060	$	(1,477)	$	500,819	$	(2,157)

	As of September 30, 2015
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Government agency issued CMO	$	370,165	$	(1,487)	$	435,331	$	(7,720)	$	805,496	$	(9,207)
Government agency issued MBS		69,997		(242)		32,538		(458)		102,535		(700)
Total debt securities		440,162		(1,729)		467,869		(8,178)		908,031		(9,907)
Equity		-		-		630		(461)		630		(461)
Total temporarily impaired securities	$	440,162	$	(1,729)	$	468,499	$	(8,639)	$	908,661	$	(10,368)

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Loans (Tables)

9 Months Ended

Sep. 30, 2016

Loans [Abstract]

Schedule Of Loans By Portfolio Segment

The following table provides the balance of loans by portfolio segment as of September 30, 2016 and 2015, and December 31, 2015:
		September 30				December 31
(Dollars in thousands)		2016		2015		2015
Commercial:
	Commercial, financial, and industrial	$	12,118,298	$	9,610,295	$	10,436,390
	Commercial real estate		2,065,595		1,488,044		1,674,935
Consumer:
	Consumer real estate (a)		4,578,371		4,813,936		4,766,518
	Permanent mortgage		436,100		463,893		454,123
	Credit card & other		357,423		349,324		354,536
Loans, net of unearned income		$	19,555,787	$	16,725,492	$	17,686,502
Allowance for loan losses			201,557		210,814		210,242
Total net loans		$	19,354,230	$	16,514,678	$	17,476,260

Balances as of September 30, 2016 and 2015, and December 31, 2015, include $38.5 million, $59.3 million, and $52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Table Text Block]

Purchased Credit-Impaired Loans
The following table reflects FHN's contractually required payment receivable, cash flows expected to be collected and the fair value of PCI loans at the acquisition date of September 16, 2016.
(Dollars in thousands)	September 16, 2016
Contractually required payments including interest	$	40,143
Less: nonaccretable difference		(1,030)
Cash flows expected to be collected		39,113
Less: accretable yield		(2,883)
Fair value of loans acquired	$	36,230

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Rollforward [Table Text Block]

The following table presents a rollforward of the accretable yield for the three and nine months ended September 30, 2016 and 2015:
	Three Months Ended					Nine Months Ended
		September 30				September 30
(Dollars in thousands)		2016		2015		2016		2015
Balance, beginning of period	$	6,171	$	8,348	$	8,542	$	14,714
Additions		2,883		-		2,883		-
Accretion		(837)		(1,037)		(2,984)		(5,985)
Adjustment for payoffs		(179)		(835)		(4,408)		(2,931)
Adjustment for charge-offs		-		-		(674)		-
Increase in accretable yield (a)		686		500		5,398		1,178
Other		-		-		(33)		-
Balance, end of period	$	8,724	$	6,976	$	8,724	$	6,976

Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

Schedule Of Acquired Purchase Credit Impaired Loans By Portfolio Segment [Table Text Block]

The following table reflects the outstanding principal balance and carrying amounts of the acquired PCI loans as of September 30, 2016 and 2015, and December 31, 2015:
	September 30, 2016				September 30, 2015				December 31, 2015
(Dollars in thousands)	Carrying value		Unpaid balance		Carrying value		Unpaid balance		Carrying value		Unpaid balance
Commercial, financial and industrial	$	46,189	$	47,882	$	4,767	$	5,353	$	16,063	$	18,573
Commercial real estate		8,661		11,340		17,998		21,138		19,929		25,504
Consumer real estate		1,233		1,733		1,968		2,636		3,672		4,533
Credit card and other		51		65		6		10		52		76
Total	$	56,134	$	61,020	$	24,739	$	29,137	$	39,716	$	48,686

Information By Class Related To Individually Impaired Loans

Impaired Loans
The following tables provide information at September 30, 2016 and 2015, by class related to individually impaired loans and consumer TDRs, regardless of accrual status. Recorded investment is defined as the amount of the investment in a loan, before valuation allowance but which does reflect any direct write-down of the investment. For purposes of this disclosure, PCI loans and net LOCOM have been excluded.
		September 30, 2016							Three Months Ended				Nine Months Ended
									September 30, 2016				September 30, 2016
				Unpaid				Average		Interest		Average		Interest
		Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)		Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	13,127	$	20,666	$	-	$	13,708	$	-	$	12,088	$	-
	Income CRE		-		-		-		1,234		-		2,057		-
	Total	$	13,127	$	20,666	$	-	$	14,942	$	-	$	14,145	$	-
Consumer:
	HELOC (a)	$	11,359	$	24,541	$	-	$	11,273	$	-	$	11,100	$	-
	R/E installment loans (a)		4,084		5,094		-		4,158		-		4,333		-
	Permanent mortgage (a)		4,279		6,654		-		4,280		-		4,292		-
	Total	$	19,722	$	36,289	$	-	$	19,711	$	-	$	19,725	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	32,982	$	34,915	$	4,262	$	33,433	$	289	$	29,896	$	668
	TRUPS		3,242		3,700		925		3,258		-		3,291		-
	Income CRE		1,968		2,246		113		3,211		15		4,376		55
	Residential CRE		1,334		1,803		103		1,355		5		1,376		17
	Total	$	39,526	$	42,664	$	5,403	$	41,257	$	309	$	38,939	$	740
Consumer:
	HELOC	$	86,967	$	89,500	$	15,769	$	87,919	$	546	$	88,266	$	1,527
	R/E installment loans		56,499		57,686		13,692		57,775		357		58,890		1,019
	Permanent mortgage		89,792		102,355		14,611		90,697		544		92,716		1,602
	Credit card & other		340		340		139		348		4		353		10
	Total	$	233,598	$	249,881	$	44,211	$	236,739	$	1,451	$	240,225	$	4,158
Total commercial		$	52,653	$	63,330	$	5,403	$	56,199	$	309	$	53,084	$	740
Total consumer		$	253,320	$	286,170	$	44,211	$	256,450	$	1,451	$	259,950	$	4,158
Total impaired loans		$	305,973	$	349,500	$	49,614	$	312,649	$	1,760	$	313,034	$	4,898

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

		September 30, 2015							Three Months Ended				Nine Months Ended
									September 30, 2015				September 30, 2015
				Unpaid				Average		Interest		Average		Interest
		Recorded		Principal		Related		Recorded		Income		Recorded		Income
(Dollars in thousands)		Investment		Balance		Allowance		Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial:
	General C&I	$	5,586	$	7,266	$	-	$	8,994	$	-	$	11,202	$	-
	Income CRE		2,468		9,389		-		3,328		-		4,631		-
	Residential CRE		-		-		-		-		-		191		-
	Total	$	8,054	$	16,655	$	-	$	12,322	$	-	$	16,024	$	-
Consumer:
	HELOC (a)	$	11,000	$	28,486	$	-	$	11,788	$	-	$	12,455	$	-
	R/E installment loans (a)		4,404		5,756		-		4,682		-		4,696		-
	Permanent mortgage (a)		5,983		8,255		-		6,193		-		6,743		-
	Total	$	21,387	$	42,497	$	-	$	22,663	$	-	$	23,894	$	-
Impaired loans with related allowance recorded:
Commercial:
	General C&I	$	21,319	$	25,515	$	846	$	25,934	$	238	$	24,702	$	727
	TRUPS		13,369		13,700		5,310		13,384		-		13,414		-
	Income CRE		6,424		7,709		496		6,606		32		6,962		95
	Residential CRE		1,417		1,886		91		1,468		6		1,512		19
	Total	$	42,529	$	48,810	$	6,743	$	47,392	$	276	$	46,590	$	841
Consumer:
	HELOC	$	89,199	$	91,382	$	17,200	$	88,245	$	474	$	86,359	$	1,383
	R/E installment loans		65,465		66,431		16,718		66,367		352		68,274		1,010
	Permanent mortgage		99,071		111,683		15,696		99,913		613		102,341		1,841
	Credit card & other		380		380		168		399		3		453		11
	Total	$	254,115	$	269,876	$	49,782	$	254,924	$	1,442	$	257,427	$	4,245
Total commercial		$	50,583	$	65,465	$	6,743	$	59,714	$	276	$	62,614	$	841
Total consumer		$	275,502	$	312,373	$	49,782	$	277,587	$	1,442	$	281,321	$	4,245
Total impaired loans		$	326,085	$	377,838	$	56,525	$	337,301	$	1,718	$	343,935	$	5,086

All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade

The following tables provide the balances of commercial loan portfolio classes with associated allowance, disaggregated by PD grade as of September 30, 2016 and 2015:
	September 30, 2016
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	475,708	$	-	$	-	$	1,109	$	-	$	476,817	3	%	$	85
2		689,620		-		-		11,586		91		701,297	5			332
3		445,832		645,764		-		133,661		-		1,225,257	9			298
4		924,003		409,470		-		230,460		-		1,563,933	11			1,001
5		1,148,228		286,413		-		299,750		561		1,734,952	12			6,330
6		1,417,978		762,294		-		297,287		13,145		2,490,704	18			10,367
7		1,431,070		209,511		-		479,531		3,286		2,123,398	15			13,302
8		995,678		93,661		-		321,942		4,174		1,415,455	10			23,930
9		634,142		32,537		-		105,274		4,079		776,032	5			14,419
10		367,947		40,099		-		57,528		12,708		478,282	3			8,401
11		218,754		-		-		24,245		4,532		247,531	2			6,229
12		118,425		-		-		12,678		6,701		137,804	1			4,290
13		216,314		-		304,527		8,990		135		529,966	4			7,262
14,15,16		154,412		70		-		18,207		1,441		174,130	1			16,804
Collectively evaluated for impairment		9,238,111		2,479,819		304,527		2,002,248		50,853		14,075,558	99			113,050
Individually evaluated for impairment		46,109		-		3,242		1,968		1,334		52,653	-			5,403
Purchased credit-impaired loans		46,490		-		-		8,758		434		55,682	1			833
Total commercial loans	$	9,330,710	$	2,479,819	$	307,769	$	2,012,974	$	52,621	$	14,183,893	100	%	$	119,286

	September 30, 2015
			Loans to												Allowance
	General		Mortgage				Income		Residential				Percentage		for Loan
(Dollars in thousands)	C&I		Companies		TRUPS (a)		CRE		CRE		Total		of Total		Losses
PD Grade:
1	$	529,836	$	-	$	-	$	707	$	-	$	530,543	5	%	$	127
2		590,614		-		-		10,835		126		601,575	5			322
3		453,831		327,776		-		90,588		-		872,195	8			311
4		822,515		315,061		-		110,165		302		1,248,043	11			949
5		1,190,085		239,391		-		234,729		7,015		1,671,220	15			6,901
6		1,201,553		350,401		-		347,740		2,793		1,902,487	17			10,630
7		1,278,443		98,262		-		354,457		4,670		1,735,832	16			13,891
8		747,760		18,189		-		150,375		561		916,885	8			13,953
9		377,998		26,240		-		42,995		2,212		449,445	4			8,310
10		188,711		-		-		30,515		89		219,315	2			4,635
11		186,974		-		-		28,004		747		215,725	2			5,861
12		80,836		-		-		9,095		516		90,447	1			2,975
13		112,423		-		305,382		3,600		260		421,665	4			4,256
14,15,16		123,345		-		-		23,195		1,277		147,817	1			14,533
Collectively evaluated for impairment		7,884,924		1,375,320		305,382		1,437,000		20,568		11,023,194	99			87,654
Individually evaluated for impairment		26,904		-		12,755		8,892		1,417		49,968	1			6,743
Purchased credit-impaired loans		5,010		-		-		18,533		1,634		25,177	-			2,414
Total commercial loans	$	7,916,838	$	1,375,320	$	318,137	$	1,464,425	$	23,619	$	11,098,339	100	%	$	96,811

Balances as of September 30, 2016 and 2015, presented net of $25.5 million and $26.2 million, respectively, in lower of cost or market (“LOCOM”) valuation adjustment. Based on the underlying structure of the notes, the highest possible internal grade is "13".

Loans by FICO Score, Consumer

The following table reflects the percentage of balances outstanding by average, refreshed FICO scores for the HELOC, real estate installment, and permanent mortgage classes of loans as of September 30, 2016 and 2015:
	September 30, 2016			September 30, 2015
	HELOC	R/E Installment Loans	Permanent Mortgage	HELOC	R/E Installment Loans	Permanent Mortgage
FICO score greater than or equal to 740	56.3%	68.7%	43.6%	55.4%	67.6%	43.1%
FICO score 720-739	8.9	9.1	9.5	8.8	8.1	9.2
FICO score 700-719	8.8	7.1	11.9	9.2	7.9	10.0
FICO score 660-699	13.2	8.8	16.5	12.9	8.8	16.8
FICO score 620-659	5.9	3.4	8.7	6.5	4.1	8.4
FICO score less than 620 (a)	6.9	2.9	9.8	7.2	3.5	12.5
Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

For this group, a majority of the FICO scores at the time of the origination exceeded 620 but have since deteriorated as the loans have seasoned.

Accruing And Non-Accruing Loans By Class

The following table reflects accruing and non-accruing loans by class on September 30, 2016:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	9,253,922	$	3,570	$	96	$	9,257,588	$	9,897	$	2,440	$	14,295	$	26,632	$	9,284,220
Loans to mortgage companies		2,478,708		1,041		-		2,479,749		-		-		70		70		2,479,819
TRUPS (a)		304,527		-		-		304,527		-		-		3,242		3,242		307,769
Purchased credit-impaired loans		45,311		711		468		46,490		-		-		-		-		46,490
Total commercial (C&I)		12,082,468		5,322		564		12,088,354		9,897		2,440		17,607		29,944		12,118,298
Commercial real estate:
Income CRE		2,000,553		1,071		-		2,001,624		113		468		2,011		2,592		2,004,216
Residential CRE		50,221		1,141		-		51,362		-		-		825		825		52,187
Purchased credit-impaired loans		7,697		390		1,105		9,192		-		-		-		-		9,192
Total commercial real estate		2,058,471		2,602		1,105		2,062,178		113		468		2,836		3,417		2,065,595
Consumer real estate:
HELOC		1,693,312		16,054		10,031		1,719,397		50,377		4,101		10,126		64,604		1,784,001
R/E installment loans		2,754,910		9,932		3,129		2,767,971		19,251		2,319		3,263		24,833		2,792,804
Purchased credit-impaired loans		1,315		-		251		1,566		-		-		-		-		1,566
Total consumer real estate		4,449,537		25,986		13,411		4,488,934		69,628		6,420		13,389		89,437		4,578,371
Permanent mortgage		396,285		4,331		6,380		406,996		11,113		3,867		14,124		29,104		436,100
Credit card & other:
Credit card		186,482		1,464		1,230		189,176		-		-		-		-		189,176
Other		167,015		843		190		168,048		-		-		148		148		168,196
Purchased credit-impaired loans		51		-		-		51		-		-		-		-		51
Total credit card & other		353,548		2,307		1,420		357,275		-		-		148		148		357,423
Total loans, net of unearned income	$	19,340,309	$	40,548	$	22,880	$	19,403,737	$	$90,751	$	13,195	$	$48,104	$	$152,050	$	$19,555,787

Total TRUPS includes LOCOM valuation adjustment of $25.5 million.

The following table reflects accruing and non-accruing loans by class on September 30, 2015:
	Accruing								Non-Accruing
			30-89		90+						30-89		90+		Total
			Days		Days		Total				Days		Days		Non-		Total
(Dollars in thousands)	Current		Past Due		Past Due		Accruing		Current		Past Due		Past Due		Accruing		Loans
Commercial (C&I):
General C&I	$	7,888,633	$	6,095	$	349	$	7,895,077	$	5,359	$	1,553	$	9,839	$	16,751	$	7,911,828
Loans to mortgage companies		1,373,103		2,102		-		1,375,205		-		-		115		115		1,375,320
TRUPS (a)		305,382		-		-		305,382		-		-		12,755		12,755		318,137
Purchased credit-impaired loans		4,705		-		305		5,010		-		-		-		-		5,010
Total commercial (C&I)		9,571,823		8,197		654		9,580,674		5,359		1,553		22,709		29,621		9,610,295
Commercial real estate:
Income CRE		1,435,395		2,394		-		1,437,789		914		-		7,189		8,103		1,445,892
Residential CRE		21,905		80		-		21,985		-		-		-		-		21,985
Purchased credit-impaired loans		16,172		3,845		150		20,167		-		-		-		-		20,167
Total commercial real estate		1,473,472		6,319		150		1,479,941		914		-		7,189		8,103		1,488,044
Consumer real estate:
HELOC		2,056,044		19,459		10,146		2,085,649		63,667		5,150		9,126		77,943		2,163,592
R/E installment loans		2,599,513		11,423		3,211		2,614,147		26,293		2,174		5,258		33,725		2,647,872
Purchased credit-impaired loans		2,383		-		89		2,472		-		-		-		-		2,472
Total consumer real estate		4,657,940		30,882		13,446		4,702,268		89,960		7,324		14,384		111,668		4,813,936
Permanent mortgage		420,727		4,051		5,270		430,048		14,044		3,228		16,573		33,845		463,893
Credit card & other:
Credit card		187,770		2,049		1,171		190,990		-		-		-		-		190,990
Other		156,664		718		202		157,584		-		-		743		743		158,327
Purchased credit-impaired loans		7		-		-		7		-		-		-		-		7
Total credit card & other		344,441		2,767		1,373		348,581		-		-		743		743		349,324
Total loans, net of unearned income	$	16,468,403	$	52,216	$	20,893	$	16,541,512	$	110,277	$	12,105	$	61,598	$	183,980	$	16,725,492

Total TRUPS includes LOCOM valuation adjustment of $26.2 million.

Schedule Of Troubled Debt Restructurings Occurring During The Year

The following tables reflect portfolio loans that were classified as TDRs during the three and nine months ended September 30, 2016 and 2015:
		Three Months Ended September 30, 2016					Nine Months Ended September 30, 2016
			Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
			Outstanding		Outstanding			Outstanding		Outstanding
(Dollars in thousands)		Number	Recorded Investment		Recorded Investment		Number	Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		2	$	419	$	419	7	$	20,302	$	19,194
	Total commercial (C&I)	2		419		419	7		20,302		19,194
Commercial real estate:
Income CRE		1		100		99	1		100		99
	Total commercial real estate	1		100		99	1		100		99
Consumer real estate:
HELOC		48		5,720		5,573	200		18,418		18,189
R/E installment loans		10		345		337	44		4,569		4,846
	Total consumer real estate	58		6,065		5,910	244		22,987		23,035
Permanent mortgage		2		710		704	6		1,551		1,544
Credit card & other		10		45		44	15		66		64
Total troubled debt restructurings		73	$	7,339	$	7,176	273	$	45,006	$	43,936

		Three Months Ended September 30, 2015					Nine Months Ended September 30, 2015
			Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
			Outstanding		Outstanding			Outstanding		Outstanding
(Dollars in thousands)		Number	Recorded Investment		Recorded Investment		Number	Recorded Investment		Recorded Investment
Commercial (C&I):
General C&I		-	$	-	$	-	2	$	1,388	$	1,325
	Total commercial (C&I)	-		-		-	2		1,388		1,325
Commercial real estate:
Income CRE		-		-		-	-		-		-
	Total commercial real estate	-		-		-	-		-		-
Consumer real estate:
HELOC		56		6,918		6,820	158		17,882		17,674
R/E installment loans		20		988		974	58		4,254		4,267
	Total consumer real estate	76		7,906		7,794	216		22,136		21,941
Permanent mortgage		-		-		-	6		2,039		2,054
Credit card & other		3		11		10	15		59		56
Total troubled debt restructurings		79	$	7,917	$	7,804	239	$	25,622	$	25,376

Schedule Of Troubled Debt Restructurings Within The Previous 12 Months

The following tables present TDRs which re-defaulted during the three and nine months ended September 30, 2016 and 2015, and as to which the modification occurred 12 months or less prior to the re-default. For purposes of this disclosure, FHN generally defines payment default as 30 or more days past due.
		Three Months Ended			Nine Months Ended
		September 30, 2016			September 30, 2016
			Recorded			Recorded
(Dollars in thousands)		Number	Investment		Number	Investment
Commercial real estate:
Residential CRE		-	$	-	-	$	-
	Total commercial real estate	-		-	-		-
Consumer real estate:
HELOC		-		-	2		138
R/E installment loans		-		-	1		180
	Total consumer real estate	-		-	3		318
Credit card & other		-		-	-		-
Total troubled debt restructurings		-	$	-	3	$	318

		Three Months Ended			Nine Months Ended
		September 30, 2015			September 30, 2015
			Recorded			Recorded
(Dollars in thousands)		Number	Investment		Number	Investment
Commercial real estate:
Residential CRE		-	$	-	1	$	896
	Total commercial real estate	-		-	1		896
Consumer real estate:
HELOC		-		-	7		308
R/E installment loans		2		50	4		162
	Total consumer real estate	2		50	11		470
Credit card & other		1		2	4		10
Total troubled debt restructurings		3	$	52	16	$	1,376

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Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Loans And Leases Receivable Allowance [Abstract]

Rollforward Of The Allowance For Loan Losses By Portfolio Segment

The following table provides a rollforward of the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2016 and 2015:
				Commercial		Consumer		Permanent		Credit Card
(Dollars in thousands)		C&I		Real Estate		Real Estate		Mortgage		and Other		Total
Balance as of July 1, 2016		$	80,972	$	30,264	$	59,081	$	17,600	$	11,890	$	199,807
Charge-offs			(1,992)		(49)		(4,359)		(373)		(3,589)		(10,362)
Recoveries			725		651		5,591		239		906		8,112
Provision/(provision credit) for loan losses			7,161		1,554		(7,078)		(877)		3,240		4,000
Balance as of September 30, 2016			86,866		32,420		53,235		16,589		12,447		201,557
Balance as of January 1, 2016		$	73,637	$	25,159	$	80,614	$	18,947	$	11,885	$	210,242
Charge-offs			(16,386)		(742)		(17,867)		(834)		(10,441)		(46,270)
Recoveries			3,107		1,782		17,408		1,502		2,786		26,585
Provision/(provision credit) for loan losses			26,508		6,221		(26,920)		(3,026)		8,217		11,000
Balance as of September 30, 2016			86,866		32,420		53,235		16,589		12,447		201,557
Allowance - individually evaluated for impairment			5,187		216		29,461		14,611		139		49,614
Allowance - collectively evaluated for impairment			81,376		31,674		23,441		1,978		12,308		150,777
Allowance - purchased credit-impaired loans			303		530		333		-		-		1,166
Loans, net of unearned as of September 30, 2016:
	Individually evaluated for impairment		49,351		3,302		158,909		94,071		340		305,973
	Collectively evaluated for impairment		12,022,457		2,053,101		4,417,896		342,029		357,032		19,192,515
	Purchased credit-impaired loans		46,490		9,192		1,566		-		51		57,299
Total loans, net of unearned income		$	12,118,298	$	2,065,595	$	4,578,371	$	436,100	$	357,423	$	19,555,787
Balance as of July 1, 2015		$	78,750	$	21,492	$	85,457	$	22,377	$	13,275	$	221,351
Charge-offs			(8,632)		(533)		(7,994)		(1,038)		(3,612)		(21,809)
Recoveries			2,264		868		5,785		229		1,126		10,272
Provision/(provision credit) for loan losses			(919)		3,521		(776)		(1,492)		666		1,000
Balance as of September 30, 2015			71,463		25,348		82,472		20,076		11,455		210,814
Balance as of January 1, 2015		$	67,011	$	18,574	$	113,011	$	19,122	$	14,730	$	232,448
Charge-offs			(17,163)		(2,208)		(23,434)		(3,031)		(13,406)		(59,242)
Recoveries			5,143		1,712		18,360		1,518		2,875		29,608
Provision/(provision credit) for loan losses			16,472		7,270		(25,465)		2,467		7,256		8,000
Balance as of September 30, 2015			71,463		25,348		82,472		20,076		11,455		210,814
Allowance - individually evaluated for impairment			6,156		587		33,918		15,696		168		56,525
Allowance - collectively evaluated for impairment			65,063		22,591		48,050		4,380		11,286		151,370
Allowance - purchased credit-impaired loans			244		2,170		504		-		1		2,919
Loans, net of unearned as of September 30, 2015:
	Individually evaluated for impairment		39,659		10,309		170,068		105,054		380		325,470
	Collectively evaluated for impairment		9,565,626		1,457,568		4,641,396		358,839		348,937		16,372,366
	Purchased credit-impaired loans		5,010		20,167		2,472		-		7		27,656
Total loans, net of unearned income		$	9,610,295	$	1,488,044	$	4,813,936	$	463,893	$	349,324	$	16,725,492

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Summary Of Intangible Assets, Net Of Accumulated Amortization Included In The Consolidated Statements

The following is a summary of goodwill and other intangible assets, net of accumulated amortization, included in the Consolidated Condensed Statements of Condition:
			Other
			Intangible
(Dollars in thousands)	Goodwill		Assets (a)
December 31, 2014	$	145,932	$	29,518
Amortization expense		-		(3,894)
September 30, 2015	$	145,932	$	25,624
December 31, 2015 (b)	$	191,307	$	26,215
Amortization expense		-		(3,898)
Additions		64		-
September 30, 2016	$	191,371	$	22,317

• Represents customer lists, acquired contracts, core deposit intangibles, and covenants not to compete.
• The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

Summary Of Gross Goodwill And Accumulated Impairment Losses And Write-Offs Detailed By Reportable Segments

			Regional		Fixed
(Dollars in thousands)			Banking		Income		Total
December 31, 2014			$	47,928	$	98,004	$	145,932
		Additions		-		-		-
		Impairments		-		-		-
		Divestitures		-		-		-
September 30, 2015			$	47,928	$	98,004	$	145,932
December 31, 2015 (a)			$	93,303	$	98,004	$	191,307
		Additions		64		-		64
		Impairments		-		-		-
		Divestitures		-		-		-
September 30, 2016			$	93,367	$	98,004	$	191,371
(a)	The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

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Other Income And Other Expense (Tables)

9 Months Ended

Sep. 30, 2016

Other Income And Other Expense [Abstract]

Other Income And Other Expense

Following is detail of All other income and commissions and All other expense as presented in the Consolidated Condensed Statements of Income:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
All other income and commissions:
Mortgage banking	$	5,524	$	761	$	7,395	$	2,721
ATM interchange fees		3,081		2,998		8,918		8,784
Electronic banking fees		1,398		1,479		4,176		4,366
Deferred compensation (a)		1,038		(2,309)		2,162		(1,311)
Letter of credit fees		981		978		3,157		3,633
Gain on extinguishment of debt		-		5,794		-		5,794
Other		5,518		3,550		10,594		13,096
Total	$	17,540	$	13,251	$	36,402	$	37,083
All other expense:
Travel and entertainment	$	2,478	$	2,451	$	7,035	$	6,697
Customer relations		1,442		1,477		4,804		4,296
Employee training and dues		1,360		1,272		4,088		3,853
Supplies		1,158		974		3,114		2,781
Tax credit investments		788		439		2,325		1,383
Miscellaneous loan costs		676		726		1,958		1,821
Litigation and regulatory matters		260		10,922		25,785		173,422
Other		8,326		8,835		30,669		26,565
Total	$	16,488	$	27,096	$	79,778	$	220,818
Certain previously reported amounts have been reclassified to agree with current presentation.
(a) Deferred compensation market value adjustments are mirrored by adjustments to employee compensation, incentives, and benefits expense.

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Components of Other Comprehensive Income/(Loss) (Tables)

9 Months Ended

Sep. 30, 2016

Table Text Block Supplement [Abstract]

Accumulated Other Comprehensive Income/(Loss)

The following table provides the changes in accumulated other comprehensive income/(loss) by component, net of tax, for the three and nine months ended September 30, 2016 and 2015:
(Dollars in thousands)			SecuritiesAFS	Cash FlowHedges		Pension and Post-retirement Plans		Total
Balance as of July 1, 2016		$	58,591	$	4,691	$	(215,616)	$	(152,334)
	Net unrealized gains/(losses)		(7,887)		(1,211)		-		(9,098)
	Amounts reclassified from AOCI		-		(359)		963		604
	Other comprehensive income/(loss)		(7,887)		(1,570)		963		(8,494)
Balance as of September 30, 2016		$	50,704	$	3,121	$	(214,653)	$	(160,828)
Balance as of January 1, 2016		$	3,394	$	-	$	(217,586)	$	(214,192)
	Net unrealized gains/(losses)		48,330		4,228		-		52,558
	Amounts reclassified from AOCI		(1,020)		(1,107)		2,933		806
	Other comprehensive income/(loss)		47,310		3,121		2,933		53,364
Balance as of September 30, 2016		$	50,704	$	3,121	$	(214,653)	$	(160,828)
(Dollars in thousands)
Balance as of July 1, 2015		$	16,485	$	-	$	(204,733)	$	(188,248)
	Net unrealized gains/(losses)		15,427		-		-		15,427
	Amounts reclassified from AOCI		-		-		(3,855)		(3,855)
	Other comprehensive income/(loss)		15,427		-		(3,855)		11,572
Balance as of September 30, 2015		$	31,912	$	-	$	(208,588)	$	(176,676)
Balance as of January 1, 2015		$	18,581	$	-	$	(206,827)	$	(188,246)
	Net unrealized gains/(losses)		13,331		-		-		13,331
	Amounts reclassified from AOCI		-		-		(1,761)		(1,761)
	Other comprehensive income/(loss)		13,331		-		(1,761)		11,570
Balance as of September 30, 2015		$	31,912	$	-	$	(208,588)	$	(176,676)

Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block]

Reclassifications from AOCI, and related tax effects, were as follows:
(Dollars in thousands)		Three Months Ended September 30				Nine Months EndedSeptember 30
Details about AOCI		2016		2015		2016		2015		Affected line item in the statement where net income is presented
Securities AFS:
	Realized (gains)/losses on securities AFS	$	-	$	-	$	(1,654)	$	-	Debt securities gains/(losses), net
	Tax expense/(benefit)		-		-		634		-	Provision/(benefit) for income taxes
			-		-		(1,020)		-
Cash flow hedges:
	Realized (gains)/losses on cash flow hedges		(582)		-		(1,795)		-	Interest and fees on loans
	Tax expense/(benefit)		223		-		688		-	Provision/(benefit) for income taxes
			(359)		-		(1,107)		-
Pension and Postretirement Plans:
	Amortization of prior service cost, transition asset/obligation, and net actuarial gain/(loss)		1,561		(6,266)		4,756		(2,854)	Employee compensation, incentives, and benefits
	Tax expense/(benefit)		(598)		2,411		(1,823)		1,093	Provision/(benefit) for income taxes
			963		(3,855)		2,933		(1,761)
Total reclassification from AOCI		$	604	$	(3,855)	$	806	$	(1,761)

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Schedule of Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders

The following table provides reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars and shares in thousands, except per share data)	2016		2015		2016		2015
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Net income attributable to noncontrolling interest		2,883		2,977		8,586		8,586
Net income/(loss) attributable to controlling interest		64,752		60,355		172,202		37,298
Preferred stock dividends		1,550		1,550		4,650		4,650
Net income/(loss) available to common shareholders	$	63,202	$	58,805	$	167,552	$	32,648
Weighted average common shares outstanding - basic		231,856		233,111		232,690		232,910
Effect of dilutive securities		2,236		1,947		2,085		1,928
Weighted average common shares outstanding - diluted		234,092		235,058		234,775		234,838
Net income/(loss) per share available to common shareholders	$	0.27	$	0.25	$	0.72	$	0.14
Diluted income/(loss) per share available to common shareholders	$	0.27	$	0.25	$	0.71	$	0.14

Schedule Of Anti-Dilutive Options and Awards

The following table presents outstanding options and other equity awards that were excluded from the calculation of diluted earnings per share because they were either anti-dilutive (the exercise price was higher than the weighted-average market price for the period) or the performance conditions have not been met:
	Three Months Ended				Nine Months Ended
	September 30				September 30
(Shares in thousands)	2016		2015		2016		2015
Anti-dilutive stock options		2,793		3,569		2,996		3,559
Weighted average exercise price of anti-dilutive stock options	$	24.95	$	24.22	$	25.21	$	24.46
Anti-dilutive other equity awards		371		124		51		58

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Pension, Savings, And Other Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2016

Pension, Savings, And Other Employee Benefits [Abstract]

Schedule Of Components Of Net Periodic Benefit Cost

The components of net periodic benefit cost for the three months ended September 30 are as follows:
		Pension Benefits				Other Benefits
(Dollars in thousands)		2016		2015		2016		2015
Components of net periodic benefit cost
Service cost		$	10	$	10	$	28	$	37
Interest cost			7,648		9,278		335		342
Expected return on plan assets			(9,797)		(9,354)		(227)		(243)
Amortization of unrecognized:
	Prior service cost/(credit)		48		84		43		(291)
	Actuarial (gain)/loss		1,971		2,786		(143)		(334)
Net periodic benefit cost/(credit)		$	(120)	$	2,804	$	36	$	(489)
ASC 715 curtailment gain			-		-		-		(8,283)
Total periodic benefit cost/(credit)		$	(120)	$	2,804	$	36	$	(8,772)

The components of net periodic benefit cost for the nine months ended September 30 are as follows:
		Pension Benefits				Other Benefits
(Dollars in thousands)		2016		2015		2016		2015
Components of net periodic benefit cost
Service cost		$	30	$	30	$	83	$	112
Interest cost			23,412		27,318		969		1,062
Expected return on plan assets			(29,342)		(28,137)		(685)		(726)
Amortization of unrecognized:
	Prior service cost/(credit)		147		250		128		(873)
	Actuarial (gain)/loss		6,106		7,577		(608)		(822)
Net periodic benefit cost/(credit)		$	353	$	7,038	$	(113)	$	(1,247)
ASC 715 curtailment gain			-		-		-		(8,283)
Total periodic benefit cost/(credit)		$	353	$	7,038	$	(113)	$	(9,530)

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Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2016

Business Segment Information [Abstract]

Amounts Of Consolidated Revenue, Expense, Tax And Assets

		Three Months Ended			Nine Months Ended
		September 30			September 30
(Dollars in thousands)	2016		2015		2016		2015
Consolidated
Net interest income	$	185,195	$	163,562	$	533,533	$	487,068
Provision for loan losses		4,000		1,000		11,000		8,000
Noninterest income		148,545		125,103		428,364		385,093
Noninterest expense		233,558		215,436		687,307		810,051
Income/(loss) before income taxes		96,182		72,229		263,590		54,110
Provision/(benefit) for income taxes		28,547		8,897		82,802		8,226
Net income/(loss)	$	67,635	$	63,332	$	180,788	$	45,884
Average assets	$	27,609,702	$	25,312,903	$	27,021,137	$	25,454,266
Certain previously reported amounts have been reclassified to agree with current presentation.

	Three Months Ended				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2016		2015		2016		2015
Regional Banking
Net interest income	$	190,510	$	165,253	$	541,144	$	485,564
Provision/(provision credit) for loan losses		8,544		6,696		34,194		28,689
Noninterest income		65,128		62,763		185,679		188,942
Noninterest expense		144,972		135,589		454,638		415,026
Income/(loss) before income taxes		102,122		85,731		237,991		230,791
Provision/(benefit) for income taxes		37,095		30,876		84,976		82,458
Net income/(loss)	$	65,027	$	54,855	$	153,015	$	148,333
Average assets	$	17,582,996	$	14,989,007	$	16,704,503	$	14,748,349

Fixed Income
Net interest income	$	2,412	$	3,003	$	8,225	$	11,616
Noninterest income		72,073		51,757		217,278		169,323
Noninterest expense		59,575		59,844		181,124		165,836
Income/(loss) before income taxes		14,910		(5,084)		44,379		15,103
Provision/(benefit) for income taxes		5,459		(2,384)		16,089		4,914
Net income/(loss)	$	9,451	$	(2,700)	$	28,290	$	10,189
Average assets	$	2,305,968	$	2,190,624	$	2,348,619	$	2,350,786

Corporate
Net interest income/(expense)	$	(18,195)	$	(19,027)	$	(48,409)	$	(52,467)
Noninterest income		5,134		8,559		15,766		17,845
Noninterest expense		14,841		11,804		44,392		40,207
Income/(loss) before income taxes		(27,902)		(22,272)		(77,035)		(74,829)
Provision/(benefit) for income taxes		(16,739)		(24,946)		(40,833)		(52,640)
Net income/(loss)	$	(11,163)	$	2,674	$	(36,202)	$	(22,189)
Average assets	$	5,880,090	$	5,886,929	$	6,024,553	$	5,951,999

Non-Strategic
Net interest income	$	10,468	$	14,333	$	32,573	$	42,355
Provision/(provision credit) for loan losses		(4,544)		(5,696)		(23,194)		(20,689)
Noninterest income		6,210		2,024		9,641		8,983
Noninterest expense		14,170		8,199		7,153		188,982
Income/(loss) before income taxes		7,052		13,854		58,255		(116,955)
Provision/(benefit) for income taxes		2,732		5,351		22,570		(26,506)
Net income/(loss)	$	4,320	$	8,503	$	35,685	$	(90,449)
Average assets	$	1,840,648	$	2,246,343	$	1,943,462	$	2,403,132
Certain previously reported amounts have been reclassified to agree with current presentation.

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entities [Abstract]

Summary Of VIEs Consolidated By FHN

The following table summarizes VIEs consolidated by FHN as of September 30, 2016 and 2015:
			September 30, 2016						September 30, 2015
			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans			On-Balance Sheet Consumer Loan Securitization			Rabbi Trusts Used for Deferred Compensation Plans
(Dollars in thousands)			Carrying Value			Carrying Value			Carrying Value			Carrying Value
Assets:
Cash and due from banks				$	127			N/A		$	2,000			N/A
Loans, net of unearned income					38,519			N/A			59,258			N/A
	Less: Allowance for loan losses				588			N/A			54			N/A
		Total net loans			37,931			N/A			59,204			N/A
Other assets					286		$	72,916			114		$	66,490
Total assets				$	38,344		$	72,916		$	61,318		$	66,490
Liabilities:
Term borrowings				$	26,062			N/A		$	48,491			N/A
Other liabilities					3		$	53,429			3		$	49,275
Total liabilities				$	26,065		$	53,429		$	48,494		$	49,275

Summary of the Impact of Qualifying LIHTC Investments

		Three Months Ended				Nine Months Ended
		September 30				September 30
(Dollars in thousands)		2016		2015		2016		2015
Provision/(benefit) for income taxes:
Amortization of qualifying LIHTC investments	$	5,445	$	2,293	$	10,073	$	6,653
Low income housing tax credits		(2,615)		(2,363)		(7,672)		(7,089)
Other tax benefits related to qualifying LIHTC investments		(6,131)		(819)		(8,310)		(2,418)

Summary Of VIEs Not Consolidated By FHN

The following table summarizes FHN’s nonconsolidated VIEs as of September 30, 2016:
	Maximum		Liability
(Dollars in thousands)	Loss Exposure		Recognized			Classification
Type
Low income housing partnerships	$	65,754		$	12,817	(a)
Other tax credit investments (b) (c)		20,321			-	Other assets
Small issuer trust preferred holdings (d)		333,309			-	Loans, net of unearned income
On-balance sheet trust preferred securitization		49,370			64,803	(e)
Proprietary residential mortgage securitizations		17,201			-	(f)
Holdings of agency mortgage-backed securities (d)		4,586,329			-	(g)
Short positions in agency mortgage-backed securities (h)		N/A			199	Trading liabilities
Commercial loan troubled debt restructurings (i)		36,354			-	Loans, net of unearned income
Sale-leaseback transaction		11,827			-	(j)

• Maximum loss exposure represents $52.9 million of current investments and $12.8 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2017.
• A liability is not recognized as investments are written down over the life of the related tax credit.
• Maximum loss exposure represents current investment balance. Of the initial investment, $18.0million was funded through loans from community development enterprises.
• Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
• Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.8 million classified as Term borrowings.
• Includes $.3 million classified as MSR, $2.8 million classified as Trading securities,and $14.1 million of aggregate servicing advances.
• Includes $.7 billion classified as Trading securities and $3.8 billion classified as Securities available-for-sale.
• No exposure of loss due to the nature of FHN’s involvement.
• Maximum loss exposure represents $36.3 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer-lessor.

The following table summarizes FHN's nonconsolidated VIEs as of September 30, 2015:
	Maximum		Liability
(Dollars in thousands)	Loss  Exposure		Recognized		Classification
Type
Low income housing partnerships	$	76,982	$	22,224	(a)
Other tax credit investments (b) (c)		21,359		-	Other assets
Small issuer trust preferred holdings (d)		344,291		-	Loans, net of unearned income
On-balance sheet trust preferred securitization		50,037		64,137	(e)
Proprietary and agency residential mortgage securitizations		25,105		-	(g)
Holdings of agency mortgage-backed securities (d)		4,030,604		-	(h)
Short positions in agency mortgage-backed securities (f)		N/A		896	Trading liabilities
Commercial loan troubled debt restructurings (i) (j)		29,280		-	Loans, net of unearned income

• Maximum loss exposure represents $54.8 million of current investments and $22.2 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016.
• A liability is not recognized as investments are written down over the life of the related tax credit.
• Maximum loss exposure represents current investment balance. Of the initial investment, $18.0 million was funded through loans from community development enterprises.
• Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a holder of the trusts’ securities.
• Includes $112.5 million classified as Loans, net of unearned income, and $1.7 million classified as Trading securities which are offset by $64.1 million classified as Term borrowings.
• No exposure of loss due to the nature of FHN’s involvement.
• Includes $.6 million classified as MSR, $4.6 million classified as Trading securities, and $19.9 million of aggregate servicing advances.
• Includes $549.2 million classified as Trading securities and $3.5 billion classified as Securities available-for-sale.
• Maximum loss exposure represents $29.2 million of current receivables and $.1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.
• A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers’ operations.

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2016

Derivatives [Abstract]

Derivatives Associated With Fixed Income Trading Activities

The following tables summarize FHN’s derivatives associated with fixed income trading activities as of September 30, 2016 and 2015:
	September 30, 2016
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,891,507		$	80,800		$	580
Offsetting Upstream Interest Rate Contracts		1,891,507			580			80,800
Option Contracts Purchased		67,500			89			-
Forwards and Futures Purchased		4,183,225			10,092			965
Forwards and Futures Sold		4,528,079			1,667			9,959

	September 30, 2015
(Dollars in thousands)	Notional		Assets			Liabilities
Customer Interest Rate Contracts	$	1,670,717		$	82,905		$	1,512
Offsetting Upstream Interest Rate Contracts		1,670,717			1,512			82,905
Option Contracts Purchased		10,000			23			-
Forwards and Futures Purchased		3,458,150			15,561			353
Forwards and Futures Sold		3,578,542			774			15,568

Derivatives Associated With Interest Rate Risk Management Activities

The following tables summarize FHN’s derivatives associated with interest rate risk management activities as of and for the three and nine months ended September 30, 2016 and 2015:
										Gains/(Losses)
										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2016				September 30, 2016
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	1,204,975		$	45,096	$	89			$	(1,964)			$	18,749
	Offsetting Upstream Interest Rate Contracts (a)		1,204,975			89		45,596				1,964				(18,749)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	900,000		$	17,257		N/A			$	(7,254)			$	19,352
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	900,000	(c)		$	7,152	(d)		$	(19,059)	(d)

										Gains/(Losses)
										Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional		Assets			Liabilities			September 30, 2015				September 30, 2015
Customer Interest Rate Contracts Hedging
Hedging Instruments and Hedged Items:
	Customer Interest Rate Contracts (a)	$	790,321		$	34,507	$	210			$	10,558			$	8,643
	Offsetting Upstream Interest Rate Contracts (a)		790,321			210		35,007				(10,558)				(8,643)
Debt Hedging
Hedging Instruments:
	Interest Rate Swaps (b)	$	1,150,000		$	16,960		N/A			$	3,247			$	(6,593)
Hedged Items:
	Term Borrowings (b)		N/A			N/A	$	1,150,000	(c)		$	(3,167)	(d)		$	6,645	(d)

• Gains/losses included in the All other expense section of the Consolidated CondensedStatements of Income.
• Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.
• Represents par value of term borrowings being hedged.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Associated With Cash Flow Hedges

The following table summarizes FHN’s derivative activities associated with cash flow hedges as of and for the three and nine months ended September 30, 2016.

Gains/(Losses)

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Notional

Assets

Liabilities

September 30, 2016

September 30, 2016

Cash Flow Hedges

Hedging Instruments:

Interest Rate Swaps (a)

$

250,000

$

5,061

N/A

$

(2,545)

(b)

$

5,061

(b)

Hedged Items:

Variability in Cash Flows Related to Trust Preferred Loans

N/A

250,000

N/A

N/A

N/A

(a)After tax gains/(losses) included within AOCI.

(b)Includes approximately $1.2 million expected to be reclassified into earnings in the next twelve months.

Schedule Of Derivative Activities Associated With Trust Preferred Loans

The following tables summarize FHN’s derivative activities associated with held-to-maturity trust preferred loans as of and for the three and nine months ended September 30, 2016 and 2015:
												Gains/(Losses)
												Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2016				September 30, 2016
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	287		$	93			$	201
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(92)	(c)		$	(199)	(c)

												Gains/(Losses)
												Three Months Ended				Nine Months Ended
(Dollars in thousands)		Notional			Assets				Liabilities			September 30, 2015				September 30, 2015
Loan Portfolio Hedging
Hedging Instruments:
	Interest Rate Swaps		$	6,500			N/A			$	600		$	40			$	144
Hedged Items:
	Trust Preferred Loans (a)			N/A		$	6,500	(b)			N/A		$	(39)	(c)		$	(142)	(c)

• Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.
• Represents principal balance being hedged.
• Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

Derivative Assets And Collateral Received

The following table provides details of derivative assets and collateral received as presented on the Consolidated Condensed Statements of Condition as of September 30:
								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Derivative
	Gross amounts		offset in the		assets presented		liabilities
	of recognized		Statements of		in the Statements		available for		Collateral
(Dollars in thousands)	assets		Condition		of Condition (a)		offset		Received		Net amount
Derivative assets:
2016 (b)	$	148,883	$	-	$	148,883	$	(8,823)	$	(125,095)	$	14,965
2015 (b)		136,098		-		136,098		(9,748)		(121,401)		4,949

• Included in Derivative assets on the Consolidated Condensed Statements of Condition. As of September 30, 2016 and2015, $11.9 million and $16.5 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
• 2016 and 2015are comprised entirely of interest rate derivative contracts.

Derivative Liabilities and Collateral Pledged

The following table provides details of derivative liabilities and collateral pledged as presented on the Consolidated Condensed Statements of Condition as of September 30:
									Gross amounts not offset in the
									Statements of Condition
			Gross amounts			Net amounts of
	Gross amounts		offset in the		liabilities presented			Derivative
	of recognized		Statements of			in the Statements		assets available		Collateral
(Dollars in thousands)	liabilities		Condition			of Condition (a)		for offset		pledged		Net amount
Derivative liabilities:
2016 (b)	$	127,352	$	-		$	127,352	$	(8,823)	$	(57,298)	$	61,231
2015 (b)		120,234		-			120,234		(9,748)		(78,211)		32,275

• Included in Derivative liabilities on the Consolidated Condensed Statements of Condition. As ofSeptember 30,2016 and 2015, $17.5 million and $20.7 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.
• 2016and 2015 are comprised entirely of interest rate derivative contracts.

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Master Netting And Similar Agreements (Tables)

9 Months Ended

Sep. 30, 2016

Master Netting And Similar Agreements [Abstract]

Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties [Table Text Block]

The following table provides details of Securities purchased under agreements to resell as presented on the Consolidated Condensed Statements of Condition and collateral pledged by counterparties as of September 30:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting		Securities collateral
	Gross amounts		offset in the		assets presented		securities sold		(not recognized on
	of recognized		Statements of		in the Statements		under agreements		FHN's Statements
(Dollars in thousands)	assets		Condition		of Condition		to repurchase		of Condition)		Net amount
Securities purchased under agreements to resell:
2016	$	802,815	$	-	$	802,815	$	(1,632)	$	(792,851)	$	8,332
2015		793,098		-		793,098		(2,909)		(782,844)		7,345

Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company [Table Text Block]

The following table provides details of Securities sold under agreements to repurchase as presented on the Consolidated Condensed Statements of Condition and collateral pledged by FHN as of September 30:

								Gross amounts not offset in the
								Statements of Condition
			Gross amounts		Net amounts of		Offsetting
	Gross amounts		offset in the		liabilities presented		securities
	of recognized		Statements of		in the Statements		purchased under		Securities
(Dollars in thousands)	liabilities		Condition		of Condition		agreements to resell		Collateral		Net amount
Securities sold under agreements to repurchase:
2016	$	341,998	$	-	$	341,998	$	(1,632)	$	(340,047)	$	319
2015		332,329		-		332,329		(2,909)		(329,420)		-

Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase

Due to the short duration of Securities sold under agreements to repurchase and the nature of collateral involved, the risks associated with these transactions are considered minimal. The following tables provide details, by collateral type, of the remaining contractual maturity of Securities sold under agreements to repurchase as of September 30:
	September 30, 2016
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	38,382	$	-	$	38,382
Government agency issued MBS		289,341		-		289,341
Government agency issued CMO		-		14,275		14,275
Total Securities sold under agreements to repurchase	$	327,723	$	14,275	$	341,998
	September 30, 2015
	Overnight and
(Dollars in thousands)	Continuous		Up to 30 Days		Total
Securities sold under agreements to repurchase:
U.S. treasuries	$	23,812	$	-	$	23,812
Government agency issued CMO		297,578		10,939		308,517
Total Securities sold under agreements to repurchase	$	321,390	$	10,939	$	332,329

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Fair Value Of Assets And Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Of Assets And Liabilities [Abstract]

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

Recurring Fair Value Measurements
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016:
			September 30, 2016
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	110,538	$	-	$	110,538
	Government agency issued MBS			-		478,756		-		478,756
	Government agency issued CMO			-		266,284		-		266,284
	Other U.S. government agencies			-		121,460		-		121,460
	States and municipalities			-		93,448		-		93,448
	Corporate and other debt			-		246,153		5		246,158
	Equity, mutual funds, and other			-		1,112		-		1,112
		Total trading securities - fixed income		-		1,317,751		5		1,317,756
Trading securities - mortgage banking				-		-		2,779		2,779
Loans held-for-sale				-		214		22,536		22,750
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		1,940,357		-		1,940,357
	Government agency issued CMO			-		1,901,144		-		1,901,144
	Equity, mutual funds, and other			24,636		-		-		24,636
		Total securities available-for-sale		24,636		3,841,601		-		3,866,237
Other assets:
	Mortgage servicing rights			-		-		1,246		1,246
	Deferred compensation assets			31,892		-		-		31,892
	Derivatives, forwards and futures			11,759		-		-		11,759
	Derivatives, interest rate contracts			-		148,972		-		148,972
	Derivatives, other			-		5		-		5
		Total other assets		43,651		148,977		1,246		193,874
		Total assets	$	68,287	$	5,308,543	$	26,566	$	5,403,396
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	508,895	$	-	$	508,895
	Government agency issued MBS			-		199		-		199
	Other U.S. government agencies			-		7,934		-		7,934
	States and municipalities			-		143		-		143
	Corporate and other debt			-		185,055		-		185,055
		Total trading liabilities - fixed income		-		702,226		-		702,226
Other liabilities:
	Derivatives, forwards and futures			10,924		-		-		10,924
	Derivatives, interest rate contracts			-		127,352		-		127,352
	Derivatives, other			-		13		6,540		6,553
		Total other liabilities		10,924		127,365		6,540		144,829
		Total liabilities	$	10,924	$	829,591	$	6,540	$	847,055

The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2015:
			September 30, 2015
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
Trading securities - fixed income:
	U.S. treasuries		$	-	$	97,211	$	-	$	97,211
	Government agency issued MBS			-		265,290		-		265,290
	Government agency issued CMO			-		283,927		-		283,927
	Other U.S. government agencies			-		113,739		-		113,739
	States and municipalities			-		65,255		-		65,255
	Trading Loans			-		16,943		-		16,943
	Corporate and other debt			-		381,470		5		381,475
	Equity, mutual funds, and other			-		742		-		742
		Total trading securities - fixed income		-		1,224,577		5		1,224,582
Trading securities - mortgage banking				-		-		4,598		4,598
Loans held-for-sale				-		-		26,789		26,789
Securities available-for-sale:
	U.S. treasuries			-		100		-		100
	Government agency issued MBS			-		945,951		-		945,951
	Government agency issued CMO			-		2,535,436		-		2,535,436
	Other U.S. government agencies			-		-		1,446		1,446
	States and municipalities			-		7,655		1,500		9,155
	Equity, mutual funds, and other			25,840		-		-		25,840
		Total securities available-for-sale		25,840		3,489,142		2,946		3,517,928
Other assets:
	Mortgage servicing rights			-		-		1,993		1,993
	Deferred compensation assets			25,972		-		-		25,972
	Derivatives, forwards and futures			16,335		-		-		16,335
	Derivatives, interest rate contracts			-		136,121		-		136,121
	Derivatives, other			-		92		-		92
		Total other assets		42,307		136,213		1,993		180,513
		Total assets	$	68,147	$	4,849,932	$	36,331	$	4,954,410
Trading liabilities - fixed income:
	U.S. treasuries		$	-	$	478,759	$	-	$	478,759
	Government agency issued MBS			-		1,481		-		1,481
	Other U.S. government agencies			-		6,482		-		6,482
	Corporate and other debt			-		301,841		-		301,841
		Total trading liabilities - fixed income		-		788,563		-		788,563
Other liabilities:
	Derivatives, forwards and futures			15,921		-		-		15,921
	Derivatives, interest rate contracts			-		120,234		-		120,234
	Derivatives, other			-		-		4,810		4,810
		Total other liabilities		15,921		120,234		4,810		140,965
		Total liabilities	$	15,921	$	908,797	$	4,810	$	929,528

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the three months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:
			Three Months Ended September 30, 2016
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on July 1, 2016			$	2,826			$	25,738			$	1,500		$	1,406		$	(6,835)
	Total net gains/(losses) included in:
		Net income		304				1,604				-			-			(4)
	Purchases			-				198				-			-			-
	Settlements			(346)				(2,146)				(1,500)			(160)			299
	Net transfers into/(out of) Level 3			-				(2,858)	(b)			-			-			-
Balance on September 30, 2016			$	2,784			$	22,536			$	-		$	1,246		$	(6,540)
Net unrealized gains/(losses) included in net income			$	244	(a)		$	1,604	(a)		$	-		$	-		$	(4)	(c)

			Three Months Ended September 30, 2015
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on July 1, 2015			$	4,929			$	26,525			$	3,060		$	2,158		$	(4,810)
	Total net gains/(losses) included in:
		Net income		57				803				-			-			(302)
		Other comprehensive income/(loss)		-				-				(16)			-			-
	Purchases			-				1,902				-			-			-
	Settlements			(383)				(1,664)				(98)			(165)			302
	Net transfers into/(out of) Level 3			-				(777)	(b)			-			-			-
Balance on September 30, 2015			$	4,603			$	26,789			$	2,946		$	1,993		$	(4,810)
Net unrealized gains/(losses) included in net income			$	57	(a)		$	803	(a)		$	-		$	-		$	(302)	(c)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the nine months ended September 30, 2016 and 2015, on a recurring basis are summarized as follows:
			Nine Months Ended September 30, 2016
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on January 1, 2016			$	4,377			$	27,418			$	1,500		$	1,841		$	(4,810)
	Total net gains/(losses) included in:
		Net income		506				2,375				-			31			(2,627)
	Purchases			-				673				-			-			-
	Sales			-				-				-			(205)			-
	Settlements			(2,099)				(4,643)				(1,500)			(421)			897
	Net transfers into/(out of) Level 3			-				(3,287)	(b)			-			-			-
Balance on September 30, 2016			$	2,784			$	22,536			$	-		$	1,246		$	(6,540)
Net unrealized gains/(losses) included in net income			$	324	(a)		$	2,375	(a)		$	-		$	-		$	(2,627)	(c)

			Nine Months Ended September 30, 2015
										Securities			Mortgage
			Trading			Loans held-				available-			servicing			Net derivative
(Dollars in thousands)			securities			for-sale				for-sale			rights, net			liabilities
Balance on January 1, 2015			$	5,642			$	27,910			$	3,307		$	2,517		$	(5,240)
	Total net gains/(losses) included in:
		Net income		296				2,193				-			-			(466)
		Other comprehensive income/(loss)		-				-				(44)			-			-
	Purchases			-				3,080				-			-			-
	Settlements			(1,335)				(4,483)				(317)			(524)			896
	Net transfers into/(out of) Level 3			-				(1,911)	(b)			-			-			-
Balance on September 30, 2015			$	4,603			$	26,789			$	2,946		$	1,993		$	(4,810)
Net unrealized gains/(losses) included in net income			$	296	(a)		$	2,193	(a)		$	-		$	-		$	(466)	(c)

• Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
• Transfers out of recurring loans held-for-sale level 3 balances generally reflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).
• Included in Other expense.

Nonrecurring Fair Value Measurements

Nonrecurring Fair Value Measurements

From time to time, FHN may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of LOCOM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at September 30, 2016 and 2015, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment, the related carrying value, and the fair value adjustments recorded during the respective periods.

									Three Months Ended		Nine Months Ended
	Carrying value at September 30, 2016								September 30, 2016		September 30, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)		Net gains/(losses)
Loans held-for-sale - first mortgages	$	-	$	-	$	671	$	671	$	10	$	17
Loans, net of unearned income (a)		-		-		31,797		31,797		461		(3,249)
Real estate acquired by foreclosure (b)		-		-		13,678		13,678		(711)		(1,561)
Other assets (c)		-		-		28,285		28,285		(788)		(2,325)
									$	(1,028)	$	(7,118)

									Three Months Ended		Nine Months Ended
	Carrying value at September 30, 2015								September 30, 2015		September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		Net gains/(losses)		Net gains/(losses)
Loans held-for-sale - first mortgages	$	-	$	-	$	726	$	726	$	10	$	48
Loans, net of unearned income (a)		-		-		27,898		27,898		1,195		2,729
Real estate acquired by foreclosure (b)		-		-		25,872		25,872		(706)		(2,366)
Other assets (c)		-		-		27,825		27,825		(439)		(1,383)
									$	60	$	(972)

• Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
• Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments accounted for under the equity method.

Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements

Level 3 Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of September 30, 2016 and 2015:
(Dollars in Thousands)
	Fair Value at
Level 3 Class	September 30, 2016		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	2,779	Discounted cash flow	Prepayment speeds	34% - 46%
				Discount rate	30% - 57%
Loans held-for-sale - residential real estate		23,207	Discounted cash flow	Prepayment speeds - First mortgage	2% - 20%
				Prepayment speeds - HELOC	5% - 15%
				Foreclosure losses	47% - 57%
				Loss severity trends - First mortgage	5% - 70% of UPB
				Loss severity trends - HELOC	35% - 100% of UPB
				Draw rate - HELOC	5% - 12%
Derivative liabilities, other		6,540	Discounted cash flow	Visa covered litigation resolution amount	$4.4 billion - $5.2 billion
				Probability of resolution scenarios	10% - 30%
				Time until resolution	27 - 57 months
Loans, net of unearned income (a)		31,797	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		13,678	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		28,285	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

• Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
• Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments accounted for under the equity method.

(Dollars in Thousands)
	Fair Value at
Level 3 Class	September 30, 2015		Valuation Techniques	Unobservable Input	Values Utilized
Trading securities - mortgage	$	4,598	Discounted cash flow	Prepayment speeds	43% - 45%
				Discount rate	6% - 59%
Loans held-for-sale - residential real estate		27,515	Discounted cash flow	Prepayment speeds - First mortgage	2% - 20%
				Prepayment speeds - HELOC	5% - 15%
				Foreclosure Losses	45% - 55%
				Loss severity trends - First mortgage	20% - 70% of UPB
				Loss severity trends - HELOC	35% - 100% of UPB
				Draw Rate - HELOC	5% - 12%
Derivative liabilities, other		4,810	Discounted cash flow	Visa covered litigation resolution amount	$4.5 billion - $5.5 billion
				Probability of resolution scenarios	5% - 25%
				Time until resolution	6 - 42 months
Loans, net of unearned income (a)		27,898	Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 10% of appraisal
			Other collateral valuations	Borrowing base certificates adjustment	20% - 50% of gross value
				Financial Statements/Auction Values adjustment	0% - 25% of reported value
Real estate acquired by foreclosure (b)		25,872	Appraisals from comparable properties	Adjustment for value changes since appraisal	0% - 10% of appraisal
Other assets (c)		27,825	Discounted cash flow	Adjustments to current sales yields for specific properties	0% - 15% adjustment to yield
			Appraisals from comparable properties	Marketability adjustments for specific properties	0% - 25% of appraisal

• Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
• Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.
• Represents tax credit investments accounted for under the equity method.

Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount

The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
		September 30, 2016
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	22,750	$	34,241		$	(11,491)
	Nonaccrual loans		6,638		12,850			(6,212)
	Loans 90 days or more past due and still accruing		22		26			(4)
		September 30, 2015
(Dollars in thousands)		Fair value carrying amount		Aggregate unpaid principal		Fair value carrying amount less aggregate unpaid principal
Residential real estate loans held-for-sale reported at fair value:
	Total loans	$	26,789	$	41,350		$	(14,561)
	Nonaccrual loans		7,206		13,712			(6,506)
	Loans 90 days or more past due and still accruing		2,677		3,822			(1,145)

Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings

Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
			Three Months Ended				Nine Months Ended
			September 30				September 30
(Dollars in thousands)			2016		2015		2016		2015
Changes in fair value included in net income:
	Mortgage banking noninterest income
		Loans held-for-sale	$	1,604	$	803	$	2,375	$	2,193

Summary Of Book Value And Estimated Fair Value Of Financial Instruments

The following tables summarize the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as well as unfunded loan commitments and stand by and other commitments as of September 30, 2016 and 2015.

			September 30, 2016
			Book		Fair Value
(Dollars in thousands)			Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
	Commercial:
		Commercial, financial and industrial	$	12,031,432	$	-	$	-	$	11,937,281	$	11,937,281
		Commercial real estate		2,033,175		-		-		2,009,820		2,009,820
	Consumer:
		Consumer real estate		4,525,136		-		-		4,455,675		4,455,675
		Permanent mortgage		419,511		-		-		410,302		410,302
		Credit card & other		344,976		-		-		345,971		345,971
Total loans, net of unearned income and allowance for loan losses				19,354,230		-		-		19,159,049		19,159,049
Short-term financial assets:
	Interest-bearing cash			219,834		219,834		-		-		219,834
	Federal funds sold			27,097		-		27,097		-		27,097
	Securities purchased under agreements to resell			802,815		-		802,815		-		802,815
Total short-term financial assets				1,049,746		219,834		829,912		-		1,049,746
Trading securities (a)				1,320,535		-		1,317,751		2,784		1,320,535
Loans held-for-sale				155,215		-		46,681		108,534		155,215
Securities available-for-sale (a) (b)				4,027,594		24,636		3,841,601		161,357		4,027,594
Securities held-to-maturity				14,340		-		-		15,042		15,042
Derivative assets (a)				160,736		11,759		148,977		-		160,736
Other assets:
	Tax credit investments			90,824		-		-		89,879		89,879
	Deferred compensation assets			31,892		31,892		-		-		31,892
Total other assets				122,716		31,892		-		89,879		121,771
Nonearning assets:
	Cash & due from banks			327,639		327,639		-		-		327,639
	Fixed income receivables			91,997		-		91,997		-		91,997
	Accrued interest receivable			64,511		-		64,511		-		64,511
Total nonearning assets				484,147		327,639		156,508		-		484,147
Total assets			$	26,689,259	$	615,760	$	6,341,430	$	19,536,645	$	26,493,835
Liabilities:
Deposits:
	Defined maturity		$	1,325,079	$	-	$	1,334,178	$	-	$	1,334,178
	Undefined maturity			20,249,101		-		20,249,101		-		20,249,101
Total deposits				21,574,180		-		21,583,279		-		21,583,279
Trading liabilities (a)				702,226		-		702,226		-		702,226
Short-term financial liabilities:
	Federal funds purchased			538,284		-		538,284		-		538,284
	Securities sold under agreements to repurchase			341,998		-		341,998		-		341,998
	Other short-term borrowings			792,736		-		792,736		-		792,736
Total short-term financial liabilities				1,673,018		-		1,673,018		-		1,673,018
Term borrowings:
	Real estate investment trust-preferred			46,015		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		18,240		18,240
	Borrowings secured by residential real estate			26,062		-		-		24,759		24,759
	Other long term borrowings			975,574		-		965,124		-		965,124
Total term borrowings				1,065,651		-		965,124		92,349		1,057,473
Derivative liabilities (a)				144,829		10,924		127,365		6,540		144,829
Other noninterest-bearing liabilities:
	Fixed income payables			68,897		-		68,897		-		68,897
	Accrued interest payable			15,376		-		15,376		-		15,376
Total other noninterest-bearing liabilities				84,273		-		84,273		-		84,273
Total liabilities			$	25,244,177	$	10,924	$	25,135,285	$	98,889	$	25,245,098

• Classes are detailed in the recurring and nonrecurring measurement tables.
• Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $68.6 million.

			September 30, 2015
			Book		Fair Value
(Dollars in thousands)			Value		Level 1		Level 2		Level 3		Total
Assets:
Loans, net of unearned income and allowance for loan losses
	Commercial:
		Commercial, financial and industrial	$	9,538,832	$	-	$	-	$	9,473,702	$	9,473,702
		Commercial real estate		1,462,696		-		-		1,447,848		1,447,848
	Consumer:
		Consumer real estate		4,731,464		-		-		4,535,337		4,535,337
		Permanent mortgage		443,817		-		-		413,188		413,188
		Credit card & other		337,869		-		-		339,527		339,527
Total loans, net of unearned income and allowance for loan losses				16,514,678		-		-		16,209,602		16,209,602
Short-term financial assets:
	Interest-bearing cash			596,689		596,689		-		-		596,689
	Federal funds sold			64,438		-		64,438		-		64,438
	Securities purchased under agreements to resell			793,098		-		793,098		-		793,098
Total short-term financial assets				1,454,225		596,689		857,536		-		1,454,225
Trading securities (a)				1,229,180		-		1,224,577		4,603		1,229,180
Loans held-for-sale (a)				124,308		-		-		124,308		124,308
Securities available-for-sale (a) (b)				3,673,641		25,840		3,489,142		158,659		3,673,641
Securities held-to-maturity				4,313		-		-		5,404		5,404
Derivative assets (a)				152,548		16,335		136,213		-		152,548
Other assets:
	Tax credit investments			98,341		-		-		58,030		58,030
	Deferred compensation assets			25,972		25,972		-		-		25,972
Total other assets				124,313		25,972		-		58,030		84,002
Nonearning assets:
	Cash & due from banks			256,342		256,342		-		-		256,342
	Fixed income receivables			83,547		-		83,547		-		83,547
	Accrued interest receivable			65,956		-		65,956		-		65,956
Total nonearning assets				405,845		256,342		149,503		-		405,845
Total assets			$	23,683,051	$	921,178	$	5,856,971	$	16,560,606	$	23,338,755
Liabilities:
Deposits:
	Defined maturity		$	1,033,896	$	-	$	1,039,007	$	-	$	1,039,007
	Undefined maturity			17,831,324		-		17,831,324		-		17,831,324
Total deposits				18,865,220		-		18,870,331		-		18,870,331
Trading liabilities (a)				788,563		-		788,563		-		788,563
Short-term financial liabilities:
	Federal funds purchased			520,992		-		520,992		-		520,992
	Securities sold under agreements to repurchase			332,329		-		332,329		-		332,329
	Other short-term borrowings			99,887		-		99,887		-		99,887
Total short-term financial liabilities				953,208		-		953,208		-		953,208
Term borrowings:
	Real estate investment trust-preferred			45,947		-		-		49,350		49,350
	Term borrowings - new market tax credit investment			18,000		-		-		18,158		18,158
	Borrowings secured by residential real estate			48,491		-		-		41,848		41,848
	Other long term borrowings			1,227,502		-		1,214,410		-		1,214,410
Total term borrowings				1,339,940		-		1,214,410		109,356		1,323,766
Derivative liabilities (a)				140,965		15,921		120,234		4,810		140,965
Other noninterest-bearing liabilities:
	Fixed income payables			95,346		-		95,346		-		95,346
	Accrued interest payable			25,358		-		25,358		-		25,358
Total other noninterest-bearing liabilities				120,704		-		120,704		-		120,704
Total liabilities			$	22,208,600	$	15,921	$	22,067,450	$	114,166	$	22,197,537

Certain previously reported amounts have been reclassified to agree with current presentation.

• Classes are detailed in the recurring and nonrecurring measurement tables.
• Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $65.8 million.

	Contractual Amount				Fair Value
(Dollars in thousands)	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Unfunded Commitments:
Loan commitments	$	8,012,345	$	7,962,431	$	1,998	$	2,694
Standby and other commitments		287,499		281,740		3,867		4,424

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Financial Information (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2017
New Accounting Pronouncement or Change in
Provision/(benefit) for income taxes	$ 28,547	$ 8,897	$ 82,802	$ 8,226
Accounting Standards Update 201609 [Member] | Minimum [Member]
New Accounting Pronouncement or Change in
Provision/(benefit) for income taxes					$ 1,000
Accounting Standards Update 201609 [Member] | Maximum [Member]
New Accounting Pronouncement or Change in
Provision/(benefit) for income taxes					$ 2,000

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Financial Information (Schedule of Accounting Changes) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
New Accounting Pronouncement or Change in
Other Assets	$ 1,435,379	$ 1,436,291	$ 1,417,071
Term borrowings	$ 1,065,651	1,312,677	1,339,940
Accounting Standards Update 201503 [Member]
New Accounting Pronouncement or Change in
Other Assets		(2,499)	(1,246)	$ (2,764)
Term borrowings		$ (2,499)	$ (1,246)	$ (2,764)

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Acquisitions and Divestitures (Narrative) (Details) $ in Thousands	9 Months Ended	10 Months Ended
	Oct. 02, 2015 USD ($) shares	Oct. 27, 2016 USD ($)	Sep. 30, 2016 USD ($)	Sep. 16, 2016 USD ($)	Dec. 31, 2015 USD ($)	[1]	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Goodwill			$ 191,371		$ 191,307		$ 145,932	$ 145,932
Trustatlantic Financial Corporation
Business Acquisition [Line Items]
Acquisition date	Oct. 02, 2015
Business Acquisition, Name of Acquired Entity	TrustAtlantic Financial Corporation
Business Acquisition, Description of Acquired Entity	Prior to the acquisition TAB had five branches located in Raleigh, Cary and Greenville, North Carolina.
Number of common shares issued in acquisition | shares	5,093,657
Number Of Bank Branches	5
Coastal Securities
Business Acquisition [Line Items]
Expected cash payment to acquire business, gross		$ 160,000
As Recorded by FHN | Trustatlantic Financial Corporation
Business Acquisition [Line Items]
Cash payment to acquire business, gross	$ 23,900
Total transaction value	96,700
Assets acquired	400,000
Loans acquired	281,900
Deposits assumed	344,000
Goodwill	45,400
As Acquired [Member] | Trustatlantic Financial Corporation
Business Acquisition [Line Items]
Loans acquired	$ 298,100
As Acquired [Member] | GE Capital Member [Member]
Business Acquisition [Line Items]
Loans acquired				$ 537,400

[1] The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

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Investment Securities (Schedule Of FHN's Investment Securities) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016		Sep. 30, 2015		Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	$ 3,945,383	[1]	$ 3,621,952	[2]
Securities available for sale, Gross Unrealized Gains	84,368	[1]	62,057	[2]
Securities available for sale, Gross Unrealized Losses	(2,157)	[1]	(10,368)	[2]
Securities available for sale, Fair Value	4,027,594	[1]	3,673,641	[2]	$ 3,929,846
Pledged available for sale securities	3,300,000		2,900,000
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	14,340		4,313		$ 14,320
Securities held to maturity, Gross Unrealized Gains	702		1,091
Securities held to maturity, Gross Unrealized Losses	0		0
Securities held to maturity, Fair Value	15,042		5,404
FRB [Member]
Schedule of Available-for-sale Securities [Line Items]
Restricted investments	68,600		65,800
FHLB-Cincinnati Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Restricted investments	87,900		87,900
U.S. treasuries
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	100		100
Securities available for sale, Gross Unrealized Gains	0		0
Securities available for sale, Gross Unrealized Losses	0		0
Securities available for sale, Fair Value	100		100
Government Agency Issued Mortgage-Backed Securities ("MBS")
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	1,877,496		914,878
Securities available for sale, Gross Unrealized Gains	62,910		31,773
Securities available for sale, Gross Unrealized Losses	(49)		(700)
Securities available for sale, Fair Value	1,940,357		945,951
Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	1,881,795		2,514,362
Securities available for sale, Gross Unrealized Gains	21,457		30,281
Securities available for sale, Gross Unrealized Losses	(2,108)		(9,207)
Securities available for sale, Fair Value	1,901,144		2,535,436
Other U.S. Government Agencies
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost			1,443
Securities available for sale, Gross Unrealized Gains			3
Securities available for sale, Gross Unrealized Losses			0
Securities available for sale, Fair Value			1,446
States And Municipalities
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost			9,155
Securities available for sale, Gross Unrealized Gains			0
Securities available for sale, Gross Unrealized Losses			0
Securities available for sale, Fair Value			9,155
Equity and other
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Amortized Cost	185,992	[3]	182,014	[4]
Securities available for sale, Gross Unrealized Gains	1	[3]	0	[4]
Securities available for sale, Gross Unrealized Losses	0	[3]	(461)	[4]
Securities available for sale, Fair Value	185,993	[3]	181,553	[4]
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	0
Securities held to maturity, Fair Value	0
States And Municipalities
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	4,340		4,313
Securities held to maturity, Gross Unrealized Gains	400		1,091
Securities held to maturity, Gross Unrealized Losses	0		0
Securities held to maturity, Fair Value	4,740		$ 5,404
Corporate Bonds
Schedule Of Held To Maturity Securities [Line Items]
Securities held to maturity, Amortized cost	10,000
Securities held to maturity, Gross Unrealized Gains	302
Securities held to maturity, Gross Unrealized Losses	0
Securities held to maturity, Fair Value	$ 10,302

[1] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[3] Includes restricted investments in FHLB-Cincinnati stock of $ 87 .9 million and FRB stock of $ 68.6 million . The remainder is money market and cost method investments.

[4] Includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 65.8 million. The remainder is money market , mutual funds, and cost method investments.

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Investment Securities (Schedule Of Amortized Cost And Fair Value By Contractual Maturity) (Details) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
Schedule of Investments [Line Items]
Within 1 year, Amortized Cost		$ 100
After 1 year; within 5 years, Amortized Cost		0
After 5 years; within 10 years, Amortized Cost		0
After 10 years, Amortized Cost		0
Subtotal, Amortized Cost		100
Within 1 year, Fair Value		100
After 1 year; within 5 years, Fair Value		0
After 5 years; within 10 years, Fair Value		0
After 10 years, Fair Value		0
Subtotal, Fair Value		100
Securities available for sale, Amortized Cost		3,945,383	[1]		$ 3,621,952	[2]
Securities available for sale, Fair Value		4,027,594	[1]	$ 3,929,846	3,673,641	[2]
HTM, Within 1 year, Amortized Cost		0
HTM, After 1 year; within 5 years, Amortized Cost		0
HTM, After 5 years; within 10 years, Amortized Cost		10,000
HTM, After 10 years, Amortized Cost		4,340
HTM Subtotal, Amortized Cost		14,340
HTM, Within 1 year, Fair Value		0
HTM, After 1 year; within 5 years, Fair Value		0
HTM, After 5 years; within 10 years, Fair Value		10,302
HTM, After 10 years, Fair Value		4,740
HTM Subtotal, Fair Value		15,042
Securities held to maturity, Amortized cost		14,340		$ 14,320	4,313
Securities held to maturity, Fair Value		15,042			5,404
Government Agency Issued MBS And CMO
Schedule of Investments [Line Items]
Securities available for sale, Amortized Cost	[3]	3,759,291
Securities available for sale, Fair Value	[3]	3,841,501
Securities held to maturity, Amortized cost	[3]	0
Securities held to maturity, Fair Value	[3]	0
Equity and other
Schedule of Investments [Line Items]
Securities available for sale, Amortized Cost		185,992	[4]		182,014	[5]
Securities available for sale, Fair Value		185,993	[4]		$ 181,553	[5]
Securities held to maturity, Amortized cost		0
Securities held to maturity, Fair Value		$ 0

[1] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[3] Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

[4] Includes restricted investments in FHLB-Cincinnati stock of $ 87 .9 million and FRB stock of $ 68.6 million . The remainder is money market and cost method investments.

[5] Includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 65.8 million. The remainder is money market , mutual funds, and cost method investments.

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Investment Securities (Schedule Of Realized Gross Gains And Losses On Sale From Available For Sale Portfolio) (Details) - USD ($) $ in Thousands		3 Months Ended				9 Months Ended
		Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2016		Sep. 30, 2015		Dec. 31, 2015
Schedule of Investments [Line Items]
Gross gains on sales of securities		$ 0		$ 0		$ 3,999		$ 284
Gross (losses) on sales of securities		0		0		(2,326)		0
Net gain/(loss) on sales of securities	[1]	0		0		1,673		284
Net OTTI recorded	[2]	(200)		(345)		(200)		(345)
Total securities gain/ (loss), net		(200)		(345)		1,473		(61)
Proceeds from sales		0		0		1,500		300
Debt securities gains/(losses), net						1,700
Available For Sale Securities		4,027,594	[3]	$ 3,673,641	[4]	4,027,594	[3]	$ 3,673,641	[4]	$ 3,929,846
Swap [Member]
Schedule of Investments [Line Items]
Available For Sale Securities		$ 294,000				$ 294,000

[1] There were no sales proceeds for the three months ended September 30, 2016 and 2015; cash proceeds for the nine months ended September 30, 2016 and 2015 were $ 1.5 million and $ .3 million, respectively. Nine months ended September 30, 2016 includes a $ 1.7 million gain from an exchange of approximately $ 294 million of AFS debt securities.

[2] OTTI recorded is related to equity securities.

[3] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[4] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

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Investment Securities (Schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	$ 358,759	$ 440,162
Less than 12 months, Unrealized Losses	(680)	(1,729)
12 months or longer, Fair Value	142,060	468,499
12 months or longer, Unrealized Losses	(1,477)	(8,639)
Total Fair Value	500,819	908,661
Total Unrealized Losses	(2,157)	(10,368)
Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	320,282	370,165
Less than 12 months, Unrealized Losses	(631)	(1,487)
12 months or longer, Fair Value	142,060	435,331
12 months or longer, Unrealized Losses	(1,477)	(7,720)
Total Fair Value	462,342	805,496
Total Unrealized Losses	(2,108)	(9,207)
Government Agency Issued Mortgage-Backed Securities ("MBS")
Schedule of Investments [Line Items]
Less than 12 months, Fair Value	38,477	69,997
Less than 12 months, Unrealized Losses	(49)	(242)
12 months or longer, Fair Value	0	32,538
12 months or longer, Unrealized Losses	0	(458)
Total Fair Value	38,477	102,535
Total Unrealized Losses	$ (49)	(700)
Total debt securities
Schedule of Investments [Line Items]
Less than 12 months, Fair Value		440,162
Less than 12 months, Unrealized Losses		(1,729)
12 months or longer, Fair Value		467,869
12 months or longer, Unrealized Losses		(8,178)
Total Fair Value		908,031
Total Unrealized Losses		(9,907)
Equity
Schedule of Investments [Line Items]
Less than 12 months, Fair Value		0
Less than 12 months, Unrealized Losses		0
12 months or longer, Fair Value		630
12 months or longer, Unrealized Losses		(461)
Total Fair Value		630
Total Unrealized Losses		$ (461)

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Loans (Narrative) (Details)		3 Months Ended		9 Months Ended
		Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($)	Sep. 16, 2016 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)	Oct. 02, 2015 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings loans		$ 289,600,000	$ 304,700,000	$ 289,600,000	$ 304,700,000
Allowance for loan losses		201,557,000	210,814,000	201,557,000	210,814,000		$ 199,807,000	$ 210,242,000		$ 221,351,000	$ 232,448,000
Average balance of impaired loans		312,649,000	337,301,000	313,034,000	343,935,000
Interest income recognized on impaired loan		1,760,000	1,718,000	4,898,000	5,086,000
Loans, net of unearned income	[1]	19,555,787,000	16,725,492,000	19,555,787,000	16,725,492,000			17,686,502,000
Provision for loan losses		4,000,000	1,000,000	11,000,000	8,000,000
Loan loss provision on PCI loans		300,000	100,000		(400,000)
Allowance - purchased credit impaired loans		1,166,000	2,919,000	1,166,000	2,919,000
As Acquired | Trustatlantic Financial Corporation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired									$ 298,100,000
As Acquired | GE Capital Member
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired						$ 537,400,000
As Recorded by FHN | Trustatlantic Financial Corporation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired									$ 281,900,000
Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		$ 16,589,000	20,076,000	$ 16,589,000	20,076,000		17,600,000	18,947,000		22,377,000	19,122,000
TDR, reduction of interest rate by increment, basis points		0.25%		0.25%
TDRS Maturities				40 years
Loans, net of unearned income		$ 436,100,000	463,893,000	$ 436,100,000	463,893,000			454,123,000
Modified interest rate increase		1.00%		1.00%
Provision for loan losses		$ (877,000)	(1,492,000)	$ (3,026,000)	2,467,000
Allowance - purchased credit impaired loans		0	0	0	0
Loans Held-For-Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings loans		71,200,000	72,600,000	$ 71,200,000	72,600,000
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percentage				26.00%
Consumer Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percentage				23.00%
Allowance for loan losses		53,235,000	82,472,000	$ 53,235,000	82,472,000		59,081,000	80,614,000		85,457,000	113,011,000
TDRS Maturities				30 years
Loans, net of unearned income	[2]	4,578,371,000	4,813,936,000	$ 4,578,371,000	4,813,936,000			4,766,518,000
Provision for loan losses		(7,078,000)	(776,000)	(26,920,000)	(25,465,000)
Allowance - purchased credit impaired loans		333,000	504,000	333,000	504,000
Allowance For TDRs To Recorded Investment Of TDRs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings loans		$ 48,700,000	$ 51,200,000	$ 48,700,000	$ 51,200,000
Ratio of the allowance for loan losses to loans		17.00%	17.00%	17.00%	17.00%
Loans To Mortgage Companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage contributed in total loan		13.00%		13.00%
Percentage of commercial & industrial loan portfolio		20.00%		20.00%
Commercial loans		$ 2,479,819,000	$ 1,375,320,000	$ 2,479,819,000	$ 1,375,320,000
Loans, net of unearned income		2,479,819,000	1,375,320,000	2,479,819,000	1,375,320,000
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		119,286,000	96,811,000	119,286,000	96,811,000
Average balance of impaired loans		56,199,000	59,714,000	53,084,000	62,614,000
Interest income recognized on impaired loan		309,000	276,000	740,000	841,000
Commercial loans		14,183,893,000	11,098,339,000	$ 14,183,893,000	11,098,339,000
Time period of default probability				1 year
Allowance - purchased credit impaired loans		833,000	2,414,000	$ 833,000	2,414,000
Credit Card & Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		12,447,000	11,455,000	12,447,000	11,455,000		$ 11,890,000	11,885,000		$ 13,275,000	$ 14,730,000
Loans, net of unearned income		357,423,000	349,324,000	357,423,000	349,324,000			354,536,000
Provision for loan losses		3,240,000	666,000	8,217,000	7,256,000
Allowance - purchased credit impaired loans		$ 0	1,000	$ 0	1,000
Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Credit card workout program, granted rate reduction		0.00%		0.00%
Loans, net of unearned income		$ 189,176,000	190,990,000	$ 189,176,000	190,990,000
Heloc And Real Estate Installment Classes
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDR, reduction of interest rate by increment, basis points		0.25%		0.25%
Modified interest rate increase		2.00%		2.00%
Restricted And Secured Consumer Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income		$ 38,500,000	59,300,000	$ 38,500,000	59,300,000			$ 52,800,000
Finance And Insurance Companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage contributed in total loan		12.00%		12.00%
Percentage of commercial & industrial loan portfolio		19.00%		19.00%
Commercial loans		$ 2,300,000,000		$ 2,300,000,000
Finance Insurance And Loans To Mortgage Companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of commercial & industrial loan portfolio		39.00%		39.00%
Maximum | Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate time period				5 years
Maximum | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Forbearance agreements time period				12 months
Maximum | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Payment reductions, time period				1 year
Credit card workout program, term extension				5 years
Maximum | Heloc And Real Estate Installment Classes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate time period				5 years
Minimum | Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate		2.00%		2.00%
Modified interest rate time period				5 years
Minimum | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Forbearance agreements time period				6 months
Minimum | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Payment reductions, time period				6 months
Minimum | Heloc And Real Estate Installment Classes
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modified interest rate		1.00%		1.00%
Modified interest rate time period				5 years
Pass | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		12		12
Pass | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		1		1
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		13		13
Special Mention | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		13		13
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		14		14
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		15		15
Unlikely to be Collected Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		16		16
Unlikely to be Collected Financing Receivable | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		16		16
PD Grade 1
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		$ 85,000	127,000	$ 85,000	127,000
Lowest expected default probability | number		1		1
PD Grade 12
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		$ 4,290,000	2,975,000	$ 4,290,000	2,975,000
PD Grade 13
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		7,262,000	$ 4,256,000	7,262,000	$ 4,256,000
PD Grade 13 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans		$ 500,000		$ 500,000
LGD Grade 1 | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		1		1
LGD Grade 12 | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan grades | number		12		12
Loan Reassessed | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans		$ 1,000,000		$ 1,000,000

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] Balances as of September 3 0 , 2016 and 2015, and December 31, 2015, include $ 38.5 million, $ 59 . 3 million, and $ 52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

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Loans (Schedule Of Loans By Portfolio Segment) (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	[1]	$ 19,555,787		$ 17,686,502	$ 16,725,492
Allowance for loan losses		201,557	$ 199,807	210,242	210,814	$ 221,351	$ 232,448
Total net loans		19,354,230		17,476,260	16,514,678
Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income		12,118,298		10,436,390	9,610,295
Allowance for loan losses		86,866	80,972	73,637	71,463	78,750	67,011
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income		2,065,595		1,674,935	1,488,044
Allowance for loan losses		32,420	30,264	25,159	25,348	21,492	18,574
Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	[2]	4,578,371		4,766,518	4,813,936
Allowance for loan losses		53,235	59,081	80,614	82,472	85,457	113,011
Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income		436,100		454,123	463,893
Allowance for loan losses		16,589	17,600	18,947	20,076	22,377	19,122
Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income		357,423		354,536	349,324
Allowance for loan losses		12,447	$ 11,890	11,885	11,455	$ 13,275	$ 14,730
Restricted And Secured Consumer Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income		$ 38,500		$ 52,800	$ 59,300

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] Balances as of September 3 0 , 2016 and 2015, and December 31, 2015, include $ 38.5 million, $ 59 . 3 million, and $ 52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

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Loans (Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 16, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Loans [Abstract]
Contractually required payments including interest		$ 40,143
Nonaccretable difference		(1,030)
Cash flows expected to be collected		39,113
Accretable yield	$ 8,724	(2,883)	$ 6,171	$ 8,542	$ 6,976	$ 8,348	$ 14,714
Fair value of loans acquired		$ 36,230

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Loans (Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Rollforward) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Loans [Abstract]
Balance, beginning of period		$ 6,171	$ 8,348	$ 8,542	$ 14,714
Additions		2,883	0	2,883	0
Accretion		(837)	(1,037)	(2,984)	(5,985)
Adjustment for payoffs		(179)	(835)	(4,408)	(2,931)
Adjustment for charge-offs		0	0	(674)	0
Increase in accretable yield	[1]	686	500	5,398	1,178
Other		0	0	(33)	0
Balance, end of period		$ 8,724	$ 6,976	$ 8,724	$ 6,976

[1] Includes changes in the accretable yield due to both transfers from the nonaccretable difference and the impact of changes in the expected timing of the cash flows.

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Loans (Schedule Of Acquired Purchase Credit Impaired Loans By Portfolio Segment) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	$ 56,134	$ 39,716	$ 24,739
Unpaid balance	61,020	48,686	29,137
Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	46,189	16,063	4,767
Unpaid balance	47,882	18,573	5,353
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	8,661	19,929	17,998
Unpaid balance	11,340	25,504	21,138
Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	1,233	3,672	1,968
Unpaid balance	1,733	4,533	2,636
Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	51	52	6
Unpaid balance	$ 65	$ 76	$ 10

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Loans (Information By Class Related To Individually Impaired Loans) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		$ 305,973	$ 326,085	$ 305,973	$ 326,085
Unpaid Principal Balance		349,500	377,838	349,500	377,838
Related Allowance		49,614	56,525	49,614	56,525
Average Recorded Investment		312,649	337,301	313,034	343,935
Interest Income Recognized		1,760	1,718	4,898	5,086
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		52,653	50,583	52,653	50,583
Unpaid Principal Balance		63,330	65,465	63,330	65,465
Related Allowance		5,403	6,743	5,403	6,743
Average Recorded Investment		56,199	59,714	53,084	62,614
Interest Income Recognized		309	276	740	841
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		253,320	275,502	253,320	275,502
Unpaid Principal Balance		286,170	312,373	286,170	312,373
Related Allowance		44,211	49,782	44,211	49,782
Average Recorded Investment		256,450	277,587	259,950	281,321
Interest Income Recognized		1,451	1,442	4,158	4,245
Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		13,127	8,054	13,127	8,054
Unpaid Principal Balance		20,666	16,655	20,666	16,655
Related Allowance		0	0	0	0
Average Recorded Investment		14,942	12,322	14,145	16,024
Interest Income Recognized		0	0	0	0
Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		19,722	21,387	19,722	21,387
Unpaid Principal Balance		36,289	42,497	36,289	42,497
Related Allowance		0	0	0	0
Average Recorded Investment		19,711	22,663	19,725	23,894
Interest Income Recognized		0	0	0	0
Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		39,526	42,529	39,526	42,529
Unpaid Principal Balance		42,664	48,810	42,664	48,810
Related Allowance		5,403	6,743	5,403	6,743
Average Recorded Investment		41,257	47,392	38,939	46,590
Interest Income Recognized		309	276	740	841
Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		233,598	254,115	233,598	254,115
Unpaid Principal Balance		249,881	269,876	249,881	269,876
Related Allowance		44,211	49,782	44,211	49,782
Average Recorded Investment		236,739	254,924	240,225	257,427
Interest Income Recognized		1,451	1,442	4,158	4,245
General C I [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		13,127	5,586	13,127	5,586
Unpaid Principal Balance		20,666	7,266	20,666	7,266
Related Allowance		0	0	0	0
Average Recorded Investment		13,708	8,994	12,088	11,202
Interest Income Recognized		0	0	0	0
General C I [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		32,982	21,319	32,982	21,319
Unpaid Principal Balance		34,915	25,515	34,915	25,515
Related Allowance		4,262	846	4,262	846
Average Recorded Investment		33,433	25,934	29,896	24,702
Interest Income Recognized		289	238	668	727
TRUPs [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		3,242	13,369	3,242	13,369
Unpaid Principal Balance		3,700	13,700	3,700	13,700
Related Allowance		925	5,310	925	5,310
Average Recorded Investment		3,258	13,384	3,291	13,414
Interest Income Recognized		0	0	0	0
Income C R E [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		0	2,468	0	2,468
Unpaid Principal Balance		0	9,389	0	9,389
Related Allowance		0	0	0	0
Average Recorded Investment		1,234	3,328	2,057	4,631
Interest Income Recognized		0	0	0	0
Income C R E [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		1,968	6,424	1,968	6,424
Unpaid Principal Balance		2,246	7,709	2,246	7,709
Related Allowance		113	496	113	496
Average Recorded Investment		3,211	6,606	4,376	6,962
Interest Income Recognized		15	32	55	95
Residential C R E [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment			0		0
Unpaid Principal Balance			0		0
Related Allowance			0		0
Average Recorded Investment			0		191
Interest Income Recognized			0		0
Residential C R E [Member] | Impaired Loans With Related Allowance Recorded [Member] | Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		1,334	1,417	1,334	1,417
Unpaid Principal Balance		1,803	1,886	1,803	1,886
Related Allowance		103	91	103	91
Average Recorded Investment		1,355	1,468	1,376	1,512
Interest Income Recognized		5	6	17	19
Home Equity [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	[1]	11,359	11,000	11,359	11,000
Unpaid Principal Balance	[1]	24,541	28,486	24,541	28,486
Related Allowance	[1]	0	0	0	0
Average Recorded Investment	[1]	11,273	11,788	11,100	12,455
Interest Income Recognized	[1]	0	0	0	0
Home Equity [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		86,967	89,199	86,967	89,199
Unpaid Principal Balance		89,500	91,382	89,500	91,382
Related Allowance		15,769	17,200	15,769	17,200
Average Recorded Investment		87,919	88,245	88,266	86,359
Interest Income Recognized		546	474	1,527	1,383
R E Installment Loans [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	[1]	4,084	4,404	4,084	4,404
Unpaid Principal Balance	[1]	5,094	5,756	5,094	5,756
Related Allowance	[1]	0	0	0	0
Average Recorded Investment	[1]	4,158	4,682	4,333	4,696
Interest Income Recognized	[1]	0	0	0	0
R E Installment Loans [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		56,499	65,465	56,499	65,465
Unpaid Principal Balance		57,686	66,431	57,686	66,431
Related Allowance		13,692	16,718	13,692	16,718
Average Recorded Investment		57,775	66,367	58,890	68,274
Interest Income Recognized		357	352	1,019	1,010
Permanent Mortgage Portfolio Segment [Member] | Impaired Loans With No Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment	[1]	4,279	5,983	4,279	5,983
Unpaid Principal Balance	[1]	6,654	8,255	6,654	8,255
Related Allowance	[1]	0	0	0	0
Average Recorded Investment	[1]	4,280	6,193	4,292	6,743
Interest Income Recognized	[1]	0	0	0	0
Permanent Mortgage Portfolio Segment [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		89,792	99,071	89,792	99,071
Unpaid Principal Balance		102,355	111,683	102,355	111,683
Related Allowance		14,611	15,696	14,611	15,696
Average Recorded Investment		90,697	99,913	92,716	102,341
Interest Income Recognized		544	613	1,602	1,841
Credit Card Other [Member] | Impaired Loans With Related Allowance Recorded [Member] | Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded Investment		340	380	340	380
Unpaid Principal Balance		340	380	340	380
Related Allowance		139	168	139	168
Average Recorded Investment		348	399	353	453
Interest Income Recognized		$ 4	$ 3	$ 10	$ 11

[1] All discharged bankruptcy loans are charged down to an estimate of net realizable value and do not carry any allowance.

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Loans (Balances Of Commercial Loan Portfolio Classes, Disaggregated By PD Grade) (Details) $ in Thousands		Sep. 30, 2016 USD ($) number	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($) number	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses		$ 201,557	$ 199,807	$ 210,242	$ 210,814	$ 221,351	$ 232,448
Total loans collectively evaluated for impairment		19,192,515			16,372,366
Total loans individually evaluated for impairment		305,973			325,470
Allowance - collectively evaluated for impairment		150,777			151,370
Allowance - individually evaluated for impairment		49,614			56,525
Allowance - purchased credit impaired loans		1,166			2,919
Purchase credit impaired loans - recorded investment		57,299			27,656
General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		9,238,111			7,884,924
Total loans individually evaluated for impairment		46,109			26,904
Total commercial loans		9,330,710			7,916,838
Purchase credit impaired loans - recorded investment		46,490			5,010
Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		2,479,819			1,375,320
Total loans individually evaluated for impairment		0			0
Total commercial loans		2,479,819			1,375,320
Purchase credit impaired loans - recorded investment		0			0
TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment	[1]	304,527			305,382
Total loans individually evaluated for impairment	[1]	3,242			12,755
Total commercial loans	[1]	307,769			318,137
LOCOM valuation allowance		$ 25,500			$ 26,200
Highest internal grade | number		13			13
Purchase credit impaired loans - recorded investment	[1]	$ 0			$ 0
Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		2,002,248			1,437,000
Total loans individually evaluated for impairment		1,968			8,892
Total commercial loans		2,012,974			1,464,425
Purchase credit impaired loans - recorded investment		8,758			18,533
Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment		50,853			20,568
Total loans individually evaluated for impairment		1,334			1,417
Total commercial loans		52,621			23,619
Purchase credit impaired loans - recorded investment		$ 434			$ 1,634
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total commercial loans		100.00%			100.00%
Allowance for loan losses		$ 119,286			$ 96,811
Total loans collectively evaluated for impairment		14,075,558			11,023,194
Total loans individually evaluated for impairment		52,653			49,968
Total commercial loans		14,183,893			11,098,339
Allowance - collectively evaluated for impairment		113,050			87,654
Allowance - individually evaluated for impairment		5,403			6,743
Allowance - purchased credit impaired loans		$ 833			$ 2,414
Percent of loan collectively evaluated for impairment		99.00%			99.00%
Percent of loan individually evaluated for impairment		0.00%			1.00%
Purchase credit impaired loans - recorded investment		$ 55,682			$ 25,177
Percent of loan purchased-credit impaired		1.00%			0.00%
Commercial Loan P D Grade One [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 476,817			$ 530,543
Percent of total commercial loans		3.00%			5.00%
Allowance for loan losses		$ 85			$ 127
Commercial Loan P D Grade One [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		475,708			529,836
Commercial Loan P D Grade One [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade One [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade One [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,109			707
Commercial Loan P D Grade One [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade Two [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 701,297			$ 601,575
Percent of total commercial loans		5.00%			5.00%
Allowance for loan losses		$ 332			$ 322
Commercial Loan P D Grade Two [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		689,620			590,614
Commercial Loan P D Grade Two [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade Two [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Two [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		11,586			10,835
Commercial Loan P D Grade Two [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		91			126
Commercial Loan P D Grade Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,225,257			$ 872,195
Percent of total commercial loans		9.00%			8.00%
Allowance for loan losses		$ 298			$ 311
Commercial Loan P D Grade Three [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		445,832			453,831
Commercial Loan P D Grade Three [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		645,764			327,776
Commercial Loan P D Grade Three [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Three [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		133,661			90,588
Commercial Loan P D Grade Three [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade Four [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,563,933			$ 1,248,043
Percent of total commercial loans		11.00%			11.00%
Allowance for loan losses		$ 1,001			$ 949
Commercial Loan P D Grade Four [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		924,003			822,515
Commercial Loan P D Grade Four [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		409,470			315,061
Commercial Loan P D Grade Four [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Four [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		230,460			110,165
Commercial Loan P D Grade Four [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			302
Commercial Loan P D Grade Five [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,734,952			$ 1,671,220
Percent of total commercial loans		12.00%			15.00%
Allowance for loan losses		$ 6,330			$ 6,901
Commercial Loan P D Grade Five [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,148,228			1,190,085
Commercial Loan P D Grade Five [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		286,413			239,391
Commercial Loan P D Grade Five [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Five [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		299,750			234,729
Commercial Loan P D Grade Five [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		561			7,015
Commercial Loan P D Grade Six [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 2,490,704			$ 1,902,487
Percent of total commercial loans		18.00%			17.00%
Allowance for loan losses		$ 10,367			$ 10,630
Commercial Loan P D Grade Six [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,417,978			1,201,553
Commercial Loan P D Grade Six [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		762,294			350,401
Commercial Loan P D Grade Six [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Six [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		297,287			347,740
Commercial Loan P D Grade Six [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		13,145			2,793
Commercial Loan P D Grade Seven [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 2,123,398			$ 1,735,832
Percent of total commercial loans		15.00%			16.00%
Allowance for loan losses		$ 13,302			$ 13,891
Commercial Loan P D Grade Seven [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		1,431,070			1,278,443
Commercial Loan P D Grade Seven [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		209,511			98,262
Commercial Loan P D Grade Seven [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Seven [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		479,531			354,457
Commercial Loan P D Grade Seven [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		3,286			4,670
Commercial Loan P D Grade Eight [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,415,455			$ 916,885
Percent of total commercial loans		10.00%			8.00%
Allowance for loan losses		$ 23,930			$ 13,953
Commercial Loan P D Grade Eight [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		995,678			747,760
Commercial Loan P D Grade Eight [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		93,661			18,189
Commercial Loan P D Grade Eight [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Eight [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		321,942			150,375
Commercial Loan P D Grade Eight [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,174			561
Commercial Loan P D Grade Nine [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 776,032			$ 449,445
Percent of total commercial loans		5.00%			4.00%
Allowance for loan losses		$ 14,419			$ 8,310
Commercial Loan P D Grade Nine [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		634,142			377,998
Commercial Loan P D Grade Nine [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		32,537			26,240
Commercial Loan P D Grade Nine [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Nine [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		105,274			42,995
Commercial Loan P D Grade Nine [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,079			2,212
Commercial Loan P D Grade Ten [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 478,282			$ 219,315
Percent of total commercial loans		3.00%			2.00%
Allowance for loan losses		$ 8,401			$ 4,635
Commercial Loan P D Grade Ten [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		367,947			188,711
Commercial Loan P D Grade Ten [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		40,099			0
Commercial Loan P D Grade Ten [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Ten [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		57,528			30,515
Commercial Loan P D Grade Ten [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		12,708			89
Commercial Loan P D Grade Eleven [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 247,531			$ 215,725
Percent of total commercial loans		2.00%			2.00%
Allowance for loan losses		$ 6,229			$ 5,861
Commercial Loan P D Grade Eleven [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		218,754			186,974
Commercial Loan P D Grade Eleven [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade Eleven [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Eleven [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		24,245			28,004
Commercial Loan P D Grade Eleven [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		4,532			747
Commercial Loan P D Grade Twelve [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 137,804			$ 90,447
Percent of total commercial loans		1.00%			1.00%
Allowance for loan losses		$ 4,290			$ 2,975
Commercial Loan P D Grade Twelve [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		118,425			80,836
Commercial Loan P D Grade Twelve [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade Twelve [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Twelve [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		12,678			9,095
Commercial Loan P D Grade Twelve [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		6,701			516
Commercial Loan P D Grade Thirteen [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 529,966			$ 421,665
Percent of total commercial loans		4.00%			4.00%
Allowance for loan losses		$ 7,262			$ 4,256
Commercial Loan P D Grade Thirteen [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		216,314			112,423
Commercial Loan P D Grade Thirteen [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		0			0
Commercial Loan P D Grade Thirteen [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	304,527			305,382
Commercial Loan P D Grade Thirteen [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		8,990			3,600
Commercial Loan P D Grade Thirteen [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		135			260
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 174,130			$ 147,817
Percent of total commercial loans		1.00%			1.00%
Allowance for loan losses		$ 16,804			$ 14,533
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		154,412			123,345
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		70			0
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade	[1]	0			0
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		18,207			23,195
Commercial Loan P D Grade Fourteen Fifteen Sixteen [Member] | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loan, Disaggregated by PD grade		$ 1,441			$ 1,277

[1] Balances as of September 30 , 2016 and 2015 , presented net of $ 25.5 million and $ 26.2 million, respectively, in lower of cost or market (“LOCOM”) valuation adjustment . Based on the underlying structure of the notes , the highest possible internal grade is " 13 ".

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Loans (Loans by FICO Score, Consumer) (Details)		Sep. 30, 2016	Sep. 30, 2015
HELOC [Member] | FICO score greater than or equal to 740
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		56.30%	55.40%
HELOC [Member] | FICO score 720-739
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.90%	8.80%
HELOC [Member] | FICO score 700-719
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.80%	9.20%
HELOC [Member] | FICO score 660-699
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		13.20%	12.90%
HELOC [Member] | FICO score 620-659
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		5.90%	6.50%
HELOC [Member] | FICO score less than 620
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage	[1]	6.90%	7.20%
HELOC [Member] | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		100.00%	100.00%
R/E Installment Loans [Member] | FICO score greater than or equal to 740
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		68.70%	67.60%
R/E Installment Loans [Member] | FICO score 720-739
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		9.10%	8.10%
R/E Installment Loans [Member] | FICO score 700-719
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		7.10%	7.90%
R/E Installment Loans [Member] | FICO score 660-699
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.80%	8.80%
R/E Installment Loans [Member] | FICO score 620-659
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		3.40%	4.10%
R/E Installment Loans [Member] | FICO score less than 620
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage	[1]	2.90%	3.50%
R/E Installment Loans [Member] | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		100.00%	100.00%
Permanent Mortgage Portfolio Segment | FICO score greater than or equal to 740
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		43.60%	43.10%
Permanent Mortgage Portfolio Segment | FICO score 720-739
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		9.50%	9.20%
Permanent Mortgage Portfolio Segment | FICO score 700-719
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		11.90%	10.00%
Permanent Mortgage Portfolio Segment | FICO score 660-699
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		16.50%	16.80%
Permanent Mortgage Portfolio Segment | FICO score 620-659
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		8.70%	8.40%
Permanent Mortgage Portfolio Segment | FICO score less than 620
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage	[1]	9.80%	12.50%
Permanent Mortgage Portfolio Segment | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average refreshed FICO score percentage		100.00%	100.00%

[1] For this group, a majority of the FICO scores at the time of the origination exceeded 620 but have since deteriorated as the loans have seasoned .

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Loans (Accruing And Non-Accruing Loans By Class) (Details) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income	[1]	$ 19,555,787		$ 17,686,502	$ 16,725,492
Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		12,088,354			9,580,674
Total Non-Accruing		29,944			29,621
Loans, net of unearned income		12,118,298		10,436,390	9,610,295
Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		4,488,934			4,702,268
Total Non-Accruing		89,437			111,668
Loans, net of unearned income	[2]	4,578,371		4,766,518	4,813,936
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		2,062,178			1,479,941
Total Non-Accruing		3,417			8,103
Loans, net of unearned income		2,065,595		1,674,935	1,488,044
Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		406,996			430,048
Total Non-Accruing		29,104			33,845
Loans, net of unearned income		436,100		454,123	463,893
Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		357,275			348,581
Total Non-Accruing		148			743
Loans, net of unearned income		357,423		$ 354,536	349,324
General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		9,257,588			7,895,077
Total Non-Accruing		26,632			16,751
Loans, net of unearned income		9,284,220			7,911,828
Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		2,479,749			1,375,205
Total Non-Accruing		70			115
Loans, net of unearned income		2,479,819			1,375,320
TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		304,527	[3]		305,382	[4]
Total Non-Accruing		3,242	[3]		12,755	[4]
Loans, net of unearned income		307,769	[3]		318,137	[4]
LOCOM valuation allowance		25,500			26,200
Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		2,001,624			1,437,789
Total Non-Accruing		2,592			8,103
Loans, net of unearned income		2,004,216			1,445,892
Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		51,362			21,985
Total Non-Accruing		825			0
Loans, net of unearned income		52,187			21,985
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		1,719,397			2,085,649
Total Non-Accruing		64,604			77,943
Loans, net of unearned income		1,784,001			2,163,592
R E Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		2,767,971			2,614,147
Total Non-Accruing		24,833			33,725
Loans, net of unearned income		2,792,804			2,647,872
Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		189,176			190,990
Total Non-Accruing		0			0
Loans, net of unearned income		189,176			190,990
Other Consumer Loans Class
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		168,048			157,584
Total Non-Accruing		148			743
Loans, net of unearned income		168,196			158,327
C&I Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		46,490			5,010
Total Non-Accruing		0			0
Loans, net of unearned income		46,490			5,010
CRE Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		9,192			20,167
Total Non-Accruing		0			0
Loans, net of unearned income		9,192			20,167
RE Installment Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		1,566			2,472
Total Non-Accruing		0			0
Loans, net of unearned income		1,566			2,472
Other Purchased Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accruing		51			7
Total Non-Accruing		0			0
Loans, net of unearned income		51			7
Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		19,340,309			16,468,403
Total Accruing		19,403,737			16,541,512
Accruing | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		40,548			52,216
Accruing | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		22,880			20,893
Accruing | Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		12,082,468			9,571,823
Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		5,322			8,197
Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		564			654
Accruing | Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		4,449,537			4,657,940
Accruing | Consumer Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		25,986			30,882
Accruing | Consumer Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		13,411			13,446
Accruing | Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		2,058,471			1,473,472
Accruing | Commercial Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,602			6,319
Accruing | Commercial Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,105			150
Accruing | Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		396,285			420,727
Accruing | Permanent Mortgage Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		4,331			4,051
Accruing | Permanent Mortgage Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		6,380			5,270
Accruing | Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		353,548			344,441
Accruing | Credit Card And Other Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,307			2,767
Accruing | Credit Card And Other Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,420			1,373
Accruing | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		9,253,922			7,888,633
Accruing | General C I [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		3,570			6,095
Accruing | General C I [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		96			349
Accruing | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		2,478,708			1,373,103
Accruing | Loans To Mortgage Companies [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,041			2,102
Accruing | Loans To Mortgage Companies [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Accruing | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		304,527	[3]		305,382	[4]
Accruing | TRUPs [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0	[3]		0	[4]
Accruing | TRUPs [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0	[3]		0	[4]
Accruing | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		2,000,553			1,435,395
Accruing | Income C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,071			2,394
Accruing | Income C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Accruing | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		50,221			21,905
Accruing | Residential C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,141			80
Accruing | Residential C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Accruing | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		1,693,312			2,056,044
Accruing | Home Equity [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		16,054			19,459
Accruing | Home Equity [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		10,031			10,146
Accruing | R E Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		2,754,910			2,599,513
Accruing | R E Installment Loans [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		9,932			11,423
Accruing | R E Installment Loans [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		3,129			3,211
Accruing | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		186,482			187,770
Accruing | Credit Card | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,464			2,049
Accruing | Credit Card | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,230			1,171
Accruing | Other Consumer Loans Class
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		167,015			156,664
Accruing | Other Consumer Loans Class | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		843			718
Accruing | Other Consumer Loans Class | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		190			202
Accruing | C&I Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		45,311			4,705
Accruing | C&I Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		711			0
Accruing | C&I Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		468			305
Accruing | CRE Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		7,697			16,172
Accruing | CRE Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		390			3,845
Accruing | CRE Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		1,105			150
Accruing | RE Installment Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		1,315			2,383
Accruing | RE Installment Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Accruing | RE Installment Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		251			89
Accruing | Other Purchased Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		51			7
Accruing | Other Purchased Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Accruing | Other Purchased Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		90,751			110,277
Total Non-Accruing		152,050			183,980
Non-Accruing | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		13,195			12,105
Non-Accruing | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		48,104			61,598
Non-Accruing | Commercial Financial And Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		9,897			5,359
Non-Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,440			1,553
Non-Accruing | Commercial Financial And Industrial Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		17,607			22,709
Non-Accruing | Consumer Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		69,628			89,960
Non-Accruing | Consumer Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		6,420			7,324
Non-Accruing | Consumer Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		13,389			14,384
Non-Accruing | Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		113			914
Non-Accruing | Commercial Real Estate Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		468			0
Non-Accruing | Commercial Real Estate Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,836			7,189
Non-Accruing | Permanent Mortgage Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		11,113			14,044
Non-Accruing | Permanent Mortgage Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		3,867			3,228
Non-Accruing | Permanent Mortgage Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		14,124			16,573
Non-Accruing | Credit Card And Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | Credit Card And Other Portfolio Segment [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Credit Card And Other Portfolio Segment [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		148			743
Non-Accruing | General C I [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		9,897			5,359
Non-Accruing | General C I [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,440			1,553
Non-Accruing | General C I [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		14,295			9,839
Non-Accruing | Loans To Mortgage Companies [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | Loans To Mortgage Companies [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Loans To Mortgage Companies [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		70			115
Non-Accruing | TRUPs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0	[3]		0	[4]
Non-Accruing | TRUPs [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0	[3]		0	[4]
Non-Accruing | TRUPs [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		3,242	[3]		12,755	[4]
Non-Accruing | Income C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		113			914
Non-Accruing | Income C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		468			0
Non-Accruing | Income C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,011			7,189
Non-Accruing | Residential C R E [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | Residential C R E [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Residential C R E [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		825			0
Non-Accruing | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		50,377			63,667
Non-Accruing | Home Equity [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		4,101			5,150
Non-Accruing | Home Equity [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		10,126			9,126
Non-Accruing | R E Installment Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		19,251			26,293
Non-Accruing | R E Installment Loans [Member] | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		2,319			2,174
Non-Accruing | R E Installment Loans [Member] | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		3,263			5,258
Non-Accruing | Credit Card
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | Credit Card | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Credit Card | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Other Consumer Loans Class
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | Other Consumer Loans Class | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Other Consumer Loans Class | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		148			743
Non-Accruing | C&I Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | C&I Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | C&I Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | CRE Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | CRE Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | CRE Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | RE Installment Purchase Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | RE Installment Purchase Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | RE Installment Purchase Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Other Purchased Credit Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current		0			0
Non-Accruing | Other Purchased Credit Impaired Loans | 30-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		0			0
Non-Accruing | Other Purchased Credit Impaired Loans | 90+ Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due		$ 0			$ 0

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] Balances as of September 3 0 , 2016 and 2015, and December 31, 2015, include $ 38.5 million, $ 59 . 3 million, and $ 52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

[3] Total TRUPS i nclude s LOCOM valuation adjustment of $25.5 million .

[4] Total TRUPS i nclu des LOCOM valuation adjustment of $26.2 million.

XML

Loans (Schedule Of Troubled Debt Restructurings Occurring During The Year) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($) number	Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($) number
General C I [Member]
Financing Receivable, Modifications [Line Items]
Number | number	2	0	7	2
Pre-Modification Outstanding Recorded Investment	$ 419	$ 0	$ 20,302	$ 1,388
Post-Modification Outstanding Recorded Investment	$ 419	$ 0	$ 19,194	$ 1,325
Commercial Financial And Industrial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	2	0	7	2
Pre-Modification Outstanding Recorded Investment	$ 419	$ 0	$ 20,302	$ 1,388
Post-Modification Outstanding Recorded Investment	$ 419	$ 0	$ 19,194	$ 1,325
Income C R E [Member]
Financing Receivable, Modifications [Line Items]
Number | number	1	0	1	0
Pre-Modification Outstanding Recorded Investment	$ 100	$ 0	$ 100	$ 0
Post-Modification Outstanding Recorded Investment	$ 99	$ 0	$ 99	$ 0
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	1	0	1	0
Pre-Modification Outstanding Recorded Investment	$ 100	$ 0	$ 100	$ 0
Post-Modification Outstanding Recorded Investment	$ 99	$ 0	$ 99	$ 0
Home Equity [Member]
Financing Receivable, Modifications [Line Items]
Number | number	48	56	200	158
Pre-Modification Outstanding Recorded Investment	$ 5,720	$ 6,918	$ 18,418	$ 17,882
Post-Modification Outstanding Recorded Investment	$ 5,573	$ 6,820	$ 18,189	$ 17,674
R E Installment Loans [Member]
Financing Receivable, Modifications [Line Items]
Number | number	10	20	44	58
Pre-Modification Outstanding Recorded Investment	$ 345	$ 988	$ 4,569	$ 4,254
Post-Modification Outstanding Recorded Investment	$ 337	$ 974	$ 4,846	$ 4,267
Consumer Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	58	76	244	216
Pre-Modification Outstanding Recorded Investment	$ 6,065	$ 7,906	$ 22,987	$ 22,136
Post-Modification Outstanding Recorded Investment	$ 5,910	$ 7,794	$ 23,035	$ 21,941
Permanent Mortgage Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	2	0	6	6
Pre-Modification Outstanding Recorded Investment	$ 710	$ 0	$ 1,551	$ 2,039
Post-Modification Outstanding Recorded Investment	$ 704	$ 0	$ 1,544	$ 2,054
Credit Card And Other Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	10	3	15	15
Pre-Modification Outstanding Recorded Investment	$ 45	$ 11	$ 66	$ 59
Post-Modification Outstanding Recorded Investment	$ 44	$ 10	$ 64	$ 56
Troubled Debt Restructurings [Member]
Financing Receivable, Modifications [Line Items]
Number | number	73	79	273	239
Pre-Modification Outstanding Recorded Investment	$ 7,339	$ 7,917	$ 45,006	$ 25,622
Post-Modification Outstanding Recorded Investment	$ 7,176	$ 7,804	$ 43,936	$ 25,376

XML

Loans (Schedule Of Troubled Debt Restructurings Within The Previous 12 Months) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($) number	Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($) number
Residential C R E [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	0	0	1
Recorded Investment | $	$ 0	$ 0	$ 0	$ 896
Home Equity [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	0	2	7
Recorded Investment | $	$ 0	$ 0	$ 138	$ 308
R E Installment Loans [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	2	1	4
Recorded Investment | $	$ 0	$ 50	$ 180	$ 162
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	0	0	1
Recorded Investment | $	$ 0	$ 0	$ 0	$ 896
Consumer Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	2	3	11
Recorded Investment | $	$ 0	$ 50	$ 318	$ 470
Credit Card And Other Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	1	0	4
Recorded Investment | $	$ 0	$ 2	$ 0	$ 10
Troubled Debt Restructurings That Subsequently Defaulted [Member]
Financing Receivable, Modifications [Line Items]
Number | number	0	3	3	16
Recorded Investment | $	$ 0	$ 52	$ 318	$ 1,376

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Allowance For Loan Losses (Rollforward Of The Allowance For Loan Losses By Portfolio Segment) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		$ 199,807	$ 221,351	$ 210,242	$ 232,448
Charge-offs		(10,362)	(21,809)	(46,270)	(59,242)
Recoveries		8,112	10,272	26,585	29,608
Provision for loan losses		4,000	1,000	11,000	8,000
Ending Balance		201,557	210,814	201,557	210,814
Allowance - individually evaluated for impairment		49,614	56,525	49,614	56,525
Allowance - collectively evaluated for impairment		150,777	151,370	150,777	151,370
Allowance - purchased credit impaired loans		1,166	2,919	1,166	2,919
Individually evaluated for impairment		305,973	325,470	305,973	325,470
Collectively evaluated for impairment		19,192,515	16,372,366	19,192,515	16,372,366
Purchase credit impaired loans - recorded investment		57,299	27,656	57,299	27,656
Loans, net of unearned income	[1]	19,555,787	16,725,492	19,555,787	16,725,492	$ 17,686,502
Commercial Financial And Industrial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		80,972	78,750	73,637	67,011
Charge-offs		(1,992)	(8,632)	(16,386)	(17,163)
Recoveries		725	2,264	3,107	5,143
Provision for loan losses		7,161	(919)	26,508	16,472
Ending Balance		86,866	71,463	86,866	71,463
Allowance - individually evaluated for impairment		5,187	6,156	5,187	6,156
Allowance - collectively evaluated for impairment		81,376	65,063	81,376	65,063
Allowance - purchased credit impaired loans		303	244	303	244
Individually evaluated for impairment		49,351	39,659	49,351	39,659
Collectively evaluated for impairment		12,022,457	9,565,626	12,022,457	9,565,626
Purchase credit impaired loans - recorded investment		46,490	5,010	46,490	5,010
Loans, net of unearned income		12,118,298	9,610,295	12,118,298	9,610,295	10,436,390
Commercial Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		30,264	21,492	25,159	18,574
Charge-offs		(49)	(533)	(742)	(2,208)
Recoveries		651	868	1,782	1,712
Provision for loan losses		1,554	3,521	6,221	7,270
Ending Balance		32,420	25,348	32,420	25,348
Allowance - individually evaluated for impairment		216	587	216	587
Allowance - collectively evaluated for impairment		31,674	22,591	31,674	22,591
Allowance - purchased credit impaired loans		530	2,170	530	2,170
Individually evaluated for impairment		3,302	10,309	3,302	10,309
Collectively evaluated for impairment		2,053,101	1,457,568	2,053,101	1,457,568
Purchase credit impaired loans - recorded investment		9,192	20,167	9,192	20,167
Loans, net of unearned income		2,065,595	1,488,044	2,065,595	1,488,044	1,674,935
Consumer Real Estate Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		59,081	85,457	80,614	113,011
Charge-offs		(4,359)	(7,994)	(17,867)	(23,434)
Recoveries		5,591	5,785	17,408	18,360
Provision for loan losses		(7,078)	(776)	(26,920)	(25,465)
Ending Balance		53,235	82,472	53,235	82,472
Allowance - individually evaluated for impairment		29,461	33,918	29,461	33,918
Allowance - collectively evaluated for impairment		23,441	48,050	23,441	48,050
Allowance - purchased credit impaired loans		333	504	333	504
Individually evaluated for impairment		158,909	170,068	158,909	170,068
Collectively evaluated for impairment		4,417,896	4,641,396	4,417,896	4,641,396
Purchase credit impaired loans - recorded investment		1,566	2,472	1,566	2,472
Loans, net of unearned income	[2]	4,578,371	4,813,936	4,578,371	4,813,936	4,766,518
Permanent Mortgage Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		17,600	22,377	18,947	19,122
Charge-offs		(373)	(1,038)	(834)	(3,031)
Recoveries		239	229	1,502	1,518
Provision for loan losses		(877)	(1,492)	(3,026)	2,467
Ending Balance		16,589	20,076	16,589	20,076
Allowance - individually evaluated for impairment		14,611	15,696	14,611	15,696
Allowance - collectively evaluated for impairment		1,978	4,380	1,978	4,380
Allowance - purchased credit impaired loans		0	0	0	0
Individually evaluated for impairment		94,071	105,054	94,071	105,054
Collectively evaluated for impairment		342,029	358,839	342,029	358,839
Purchase credit impaired loans - recorded investment		0	0	0	0
Loans, net of unearned income		436,100	463,893	436,100	463,893	454,123
Credit Card & Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		11,890	13,275	11,885	14,730
Charge-offs		(3,589)	(3,612)	(10,441)	(13,406)
Recoveries		906	1,126	2,786	2,875
Provision for loan losses		3,240	666	8,217	7,256
Ending Balance		12,447	11,455	12,447	11,455
Allowance - individually evaluated for impairment		139	168	139	168
Allowance - collectively evaluated for impairment		12,308	11,286	12,308	11,286
Allowance - purchased credit impaired loans		0	1	0	1
Individually evaluated for impairment		340	380	340	380
Collectively evaluated for impairment		357,032	348,937	357,032	348,937
Purchase credit impaired loans - recorded investment		51	7	51	7
Loans, net of unearned income		$ 357,423	$ 349,324	$ 357,423	$ 349,324	$ 354,536

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] Balances as of September 3 0 , 2016 and 2015, and December 31, 2015, include $ 38.5 million, $ 59 . 3 million, and $ 52.8 million of restricted real estate loans, respectively. See Note 13 - Variable Interest Entities for additional information.

XML

Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	[1]	Sep. 30, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Gross carrying amount of other intangible assets	$ 72,300
Intangible assets accumulated amortization	50,000
Future Amortization Expense, Remainder of Fiscal Year	1,300
Estimated aggregate amortization expense, Year 2017	4,900
Estimated aggregate amortization expense, Year 2018	4,700
Estimated aggregate amortization expense, Year 2019	4,500
Estimated aggregate amortization expense, Year 2020	1,700
Estimated aggregate amortization expense, Year 2021	1,600
Goodwill [Line Items]
Goodwill	191,371	$ 191,307		$ 145,932	$ 145,932
Non Strategic [Member]
Goodwill [Line Items]
Gross goodwill	200,000
Accumulated impairments	114,100
Accumulated divestiture related write-offs	85,900
Goodwill	$ 0

[1] The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

XML

Intangible Assets (Summary Of Intangible Assets, Net Of Accumulated Amortization Included In The Consolidated Statements) (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2016		Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill, Beginning balance		$ 191,307	[1]	$ 145,932
Goodwill, Amortization expense		0		0
Goodwill, Additions		64		0
Goodwill, Ending balance		191,371		145,932
Other Intangible Assets, Beginning Balance	[2]	26,215		29,518
Other Intangible Assets, Amortization expense	[2]	(3,898)		(3,894)
Other Intangible Assets, Ending Balance	[2]	$ 22,317		$ 25,624

[1] The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

[2] Represents customer lists, acquired contracts, core deposit intangibles, and covenants not to compete.

XML

Intangible Assets (Summary Of Gross Goodwill And Accumulated Impairment Losses And Write-Offs Detailed By Reportable Segments) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	[1]	Dec. 31, 2014
Goodwill [Line Items]
Goodwill	$ 191,371	$ 145,932	$ 191,307		$ 145,932
Additions	64	0
Impairments	0	0
Divestitures	0	0
Regional Banking [Member]
Goodwill [Line Items]
Goodwill	93,367	47,928	93,303		47,928
Additions	64	0
Impairments	0	0
Divestitures	0	0
Fixed Income [Member]
Goodwill [Line Items]
Goodwill	98,004	98,004	$ 98,004		$ 98,004
Additions	0	0
Impairments	0	0
Divestitures	$ 0	$ 0

[1] The increase in goodwill was related to the TAF acquisition in fourth quarter 2015.

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Other Income And Other Expense (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
All other income and commissions:
Mortgage banking		$ 5,524,000	$ 761,000	$ 7,395,000	$ 2,721,000
ATM interchange fees		3,081,000	2,998,000	8,918,000	8,784,000
Electronic banking fees		1,398,000	1,479,000	4,176,000	4,366,000
Deferred compensation	[1]	1,038,000	(2,309,000)	2,162,000	(1,311,000)
Letter of credit fees		981,000	978,000	3,157,000	3,633,000
Gain on extinguishment of debt		0	5,794,000	0	5,794,000
Other		5,518,000	3,550,000	10,594,000	13,096,000
Total		17,540,000	13,251,000	36,402,000	37,083,000
All other expense:
Travel and entertainment		2,478,000	2,451,000	7,035,000	6,697,000
Customer relations		1,442,000	1,477,000	4,804,000	4,296,000
Employee training and dues		1,360,000	1,272,000	4,088,000	3,853,000
Supplies		1,158,000	974,000	3,114,000	2,781,000
Tax credit investments		788,000	439,000	2,325,000	1,383,000
Miscellaneous loan costs		676,000	726,000	1,958,000	1,821,000
Litigation and regulatory matters		260,000	10,922,000	25,785,000	173,422,000
Other		8,326,000	8,835,000	30,669,000	26,565,000
Total		$ 16,488,000	$ 27,096,000	$ 79,778,000	$ 220,818,000

[1] (a) Deferred compensation market value adjustments are mirrored by adjustments to employee compensation, incentives, and benefits expense.

XML

Components of Other Comprehensive Income/(loss) (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016		Sep. 30, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ (152,334)	$ (188,248)	$ (214,192)		$ (188,246)
Net unrealized gains/(losses)	(9,098)	15,427	52,558		13,331
Amounts reclassifed from AOCI	604	(3,855)	806		(1,761)
Other comprehensive income/(loss)	(8,494)	11,572	53,364	[1]	11,570	[1]
Ending Balance	(160,828)	(176,676)	(160,828)		(176,676)
Securities AFS
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	58,591	16,485	3,394		18,581
Net unrealized gains/(losses)	(7,887)	15,427	48,330		13,331
Amounts reclassifed from AOCI	0	0	(1,020)		0
Other comprehensive income/(loss)	(7,887)	15,427	47,310		13,331
Ending Balance	50,704	31,912	50,704		31,912
Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	4,691	0	0		0
Net unrealized gains/(losses)	(1,211)	0	4,228		0
Amounts reclassifed from AOCI	(359)	0	(1,107)		0
Other comprehensive income/(loss)	(1,570)	0	3,121		0
Ending Balance	3,121	0	3,121		0
Pension and Postretirement Plans
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(215,616)	(204,733)	(217,586)		(206,827)
Net unrealized gains/(losses)	0	0	0		0
Amounts reclassifed from AOCI	963	(3,855)	2,933		(1,761)
Other comprehensive income/(loss)	963	(3,855)	2,933		(1,761)
Ending Balance	$ (214,653)	$ (208,588)	$ (214,653)		$ (208,588)

[1] Due to the nature of the preferred stock issued by FHN and its subsidiaries, all components of Other comprehensive income/(loss) have been attributed solely to FHN as the controlling interest holder.

XML

Components of Other Comprehensive Income/(loss) (Schedule of Reclassification from AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Amounts reclassifed from AOCI	$ 604	$ (3,855)	$ 806	$ (1,761)
Securities AFS
Accumulated Other Comprehensive Income Loss [Line Items]
Realized gains/(losses)	0	0	(1,654)	0
Tax expense/(benefit)	0	0	634	0
Amounts reclassifed from AOCI	0	0	(1,020)	0
Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Realized gains/(losses)	(582)	0	(1,795)	0
Tax expense/(benefit)	223	0	688	0
Amounts reclassifed from AOCI	(359)	0	(1,107)	0
Pension and Postretirement Plans
Accumulated Other Comprehensive Income Loss [Line Items]
Realized gains/(losses)	1,561	(6,266)	4,756	(2,854)
Tax expense/(benefit)	(598)	2,411	(1,823)	1,093
Amounts reclassifed from AOCI	$ 963	$ (3,855)	$ 2,933	$ (1,761)

XML

Earnings Per Share (Schedule Of Reconciliation Of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income/(loss)	$ 67,635	$ 63,332	$ 180,788	$ 45,884
Net income attributable to noncontrolling interest	2,883	2,977	8,586	8,586
Net income/(loss) attributable to controlling interest	64,752	60,355	172,202	37,298
Preferred stock dividends	1,550	1,550	4,650	4,650
Net income/(loss) available to common shareholders	$ 63,202	$ 58,805	$ 167,552	$ 32,648
Weighted average common shares outstanding - basic	231,856,000	233,111,000	232,690,000	232,910,000
Effect of dilutive securities	2,236,000	1,947,000	2,085,000	1,928,000
Weighted average common shares outstanding - diluted	234,092,000	235,058,000	234,775,000	234,838,000
Net income/(loss) per share available to common shareholders	$ 0.27	$ 0.25	$ 0.72	$ 0.14
Diluted income/(loss) per share available to common shareholders	$ 0.27	$ 0.25	$ 0.71	$ 0.14

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Earnings Per Share (Schedule Of Anti-Dilutive Options and Awards) (Details) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Anti-dilutive stock options	2,793	3,569	2,996	3,559
Weighted average exercise price of anti-dilutive stock options	$ 24.95	$ 24.22	$ 25.21	$ 24.46
Anti-dilutive other equity awards	371	124	51	58

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Contingencies And Other Disclosures (Narrative I) (Details) shares in Millions	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) number shares	Dec. 31, 2008 USD ($)	Dec. 31, 2007 USD ($)	Sep. 30, 2015 USD ($)	Mar. 31, 2008 shares
Loss Contingencies [Line Items]
Estimated Litigation Liability		$ 39,900,000
Number of GSEs to which conventional conforming single-family mortgage loans were predominately sold to | number		2
Loan-to-value ratio at origination		80.00%
Accrued losses on loan repurchase exposure		$ 67,600,000			$ 115,500,000
Mortgage loans originated and sold to agencies			$ 69,500,000,000
Loans sold to GSEs			57,600,000,000
Loans Guaranteed By Ginnie Mae			$ 11,900,000,000
Loans included in FH proprietary securitizations				$ 26,700,000,000
Fha Insured [Member]
Loss Contingencies [Line Items]
Amount Of Insurance Recoveries Company Is Pursuing		75,000,000
Litigation Settlement Expense	$ 212,500,000
Mortgage Securitization Litigation [Member]
Loss Contingencies [Line Items]
Investment in proprietary securitizations subject to lawsuits		145,700,000
Investment in proprietary securitizations subject to indemnifications		$ 409,900,000
Visa Class B Shares [Member]
Loss Contingencies [Line Items]
Number of Visa Class B shares | shares		1.1				2.4
Estimated conversion ratio		165.00%
Contingent liability		$ 800,000
Derivative liability		6,500,000			$ 4,800,000
Historical cost		0
Value of holdings of Visa Class B Shares if converted into Class A shares at the current conversion ratio		151,000,000
Subservicer expenditure reimbursement amount disputed
Loss Contingencies [Line Items]
Actual damages sought by plaintiff		43,500,000
Minimum
Loss Contingencies [Line Items]
Estimated reasonably possible losses in excess of currently established liabilities		0
Maximum
Loss Contingencies [Line Items]
Estimated reasonably possible losses in excess of currently established liabilities		$ 70,000,000

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Pension, Savings, And Other Employee Benefits (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Estimated social security benefits age		65 years
Contributions to non-qualified plans		$ 165,000	$ 0
First Horizon National Corporation | Expected reduction to interest cost in 2016 [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost		$ (5,800)
Non Qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions to non-qualified plans					$ 4,900
Expected pension contribution				$ 5,200
Savings Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer investment in qualified defined contribution plan		100.00%	100.00%
Maximum percent of employee pre-tax contributions that may be matched by the Company		6.00%	6.00%
Other Postretirement Benefit Plans Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
ASC 715 curtailment gain	$ 8,300
Tax Affected Adjustment To Accumulated Other Comprehensive Income	5,300		$ 5,300
Reduction in projected benefit obligation	$ 1,000

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Pension, Savings, And Other Employee Benefits (Schedule Of Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Pension Plans Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 10	$ 10	$ 30	$ 30
Interest cost	7,648	9,278	23,412	27,318
Expected return on plan assets	(9,797)	(9,354)	(29,342)	(28,137)
Amortization of unrecognized, Prior service cost/(credit)	48	84	147	250
Amortization of unrecognized, Actuarial (gain)/loss	1,971	2,786	6,106	7,577
Net periodic benefit cost/(credit)	(120)	2,804	353	7,038
ASC 715 curtailment gain	0	0	0	0
Total periodic benefit cost/(credit)	(120)	2,804	353	7,038
Other Postretirement Benefit Plans Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	28	37	83	112
Interest cost	335	342	969	1,062
Expected return on plan assets	(227)	(243)	(685)	(726)
Amortization of unrecognized, Prior service cost/(credit)	43	(291)	128	(873)
Amortization of unrecognized, Actuarial (gain)/loss	(143)	(334)	(608)	(822)
Net periodic benefit cost/(credit)	36	(489)	(113)	(1,247)
ASC 715 curtailment gain	0	(8,283)	0	(8,283)
Total periodic benefit cost/(credit)	$ 36	$ (8,772)	$ (113)	$ (9,530)

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Business Segment Information (Amounts Of Consolidated Revenue, Expense, Tax And Assets) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Segment Reporting Information [Line Items]
Net interest income	$ 185,195	$ 163,562	$ 533,533	$ 487,068
Provision/(provision credit) for loan losses	4,000	1,000	11,000	8,000
Noninterest income	148,545	125,103	428,364	385,093
Noninterest expense	233,558	215,436	687,307	810,051
Income/(loss) before income taxes	96,182	72,229	263,590	54,110
Provision/(benefit) for income taxes	28,547	8,897	82,802	8,226
Net income/(loss)	67,635	63,332	180,788	45,884
Average assets	27,609,702	25,312,903	$ 27,021,137	25,454,266
Number of Operating Segments			4
Regional Banking [Member]
Segment Reporting Information [Line Items]
Net interest income	190,510	165,253	$ 541,144	485,564
Provision/(provision credit) for loan losses	8,544	6,696	34,194	28,689
Noninterest income	65,128	62,763	185,679	188,942
Noninterest expense	144,972	135,589	454,638	415,026
Income/(loss) before income taxes	102,122	85,731	237,991	230,791
Provision/(benefit) for income taxes	37,095	30,876	84,976	82,458
Net income/(loss)	65,027	54,855	153,015	148,333
Average assets	17,582,996	14,989,007	16,704,503	14,748,349
Fixed Income [Member]
Segment Reporting Information [Line Items]
Net interest income	2,412	3,003	8,225	11,616
Noninterest income	72,073	51,757	217,278	169,323
Noninterest expense	59,575	59,844	181,124	165,836
Income/(loss) before income taxes	14,910	(5,084)	44,379	15,103
Provision/(benefit) for income taxes	5,459	(2,384)	16,089	4,914
Net income/(loss)	9,451	(2,700)	28,290	10,189
Average assets	2,305,968	2,190,624	2,348,619	2,350,786
Corporate [Member]
Segment Reporting Information [Line Items]
Net interest income	(18,195)	(19,027)	(48,409)	(52,467)
Noninterest income	5,134	8,559	15,766	17,845
Noninterest expense	14,841	11,804	44,392	40,207
Income/(loss) before income taxes	(27,902)	(22,272)	(77,035)	(74,829)
Provision/(benefit) for income taxes	(16,739)	(24,946)	(40,833)	(52,640)
Net income/(loss)	(11,163)	2,674	(36,202)	(22,189)
Average assets	5,880,090	5,886,929	6,024,553	5,951,999
Non Strategic [Member]
Segment Reporting Information [Line Items]
Net interest income	10,468	14,333	32,573	42,355
Provision/(provision credit) for loan losses	(4,544)	(5,696)	(23,194)	(20,689)
Noninterest income	6,210	2,024	9,641	8,983
Noninterest expense	14,170	8,199	7,153	188,982
Income/(loss) before income taxes	7,052	13,854	58,255	(116,955)
Provision/(benefit) for income taxes	2,732	5,351	22,570	(26,506)
Net income/(loss)	4,320	8,503	35,685	(90,449)
Average assets	$ 1,840,648	$ 2,246,343	$ 1,943,462	$ 2,403,132

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Variable Interest Entities (Summary Of VIE Consolidated By FHN) (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets:
Cash and due from banks		$ 327,639		$ 300,811	$ 256,342
Loans, net of unearned income	[1]	19,555,787		17,686,502	16,725,492
Allowance for loan losses		201,557	$ 199,807	210,242	210,814	$ 221,351	$ 232,448
Total net loans		19,354,230		17,476,260	16,514,678
Other assets		1,435,379		1,436,291	1,417,071
Total assets		28,449,222		26,192,637	25,386,073
Liabilities:
Term borrowings		1,065,651		1,312,677	1,339,940
Other liabilities		475,839		635,306	622,586
Total liabilities		25,704,640		$ 23,553,051	22,805,828
On Balance Sheet Consumer Loan Securitizations [Member]
Assets:
Cash and due from banks		127			2,000
Loans, net of unearned income		38,519			59,258
Allowance for loan losses		588			54
Total net loans		37,931			59,204
Other assets		286			114
Total assets		38,344			61,318
Liabilities:
Term borrowings		26,062			48,491
Other liabilities		3			3
Total liabilities		26,065			48,494
Rabbi Trusts Used For Deferred Compensation Plans [Member]
Assets:
Other assets		72,916			66,490
Total assets		72,916			66,490
Liabilities:
Other liabilities		53,429			49,275
Total liabilities		$ 53,429			$ 49,275

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

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Variable Interest Entities (Summary of the Impact of Qualifying LIHTC Investments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Low income housing tax credits [Member]
Variable Interest Entity [Line Items]
Amortization of qualifying LIHTC investments	$ 5,445	$ 2,293	$ 10,073	$ 6,653
Affordable Housing Tax Credits and Other Tax Benefits	(2,615)	(2,363)	(7,672)	(7,089)
Other tax benefits related to qualifying LIHTC investments [Member]
Variable Interest Entity [Line Items]
Affordable Housing Tax Credits and Other Tax Benefits	$ (6,131)	$ (819)	$ (8,310)	$ (2,418)

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Variable Interest Entities (Summary Of VIE Not Consolidated By FHN) (Details) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
Variable Interest Entity [Line Items]
Loans, net of unearned income	[1]	$ 19,555,787		$ 17,686,502	$ 16,725,492
Term borrowings		1,065,651		1,312,677	1,339,940
Trading securities		1,320,535		881,450	1,229,180
Securities available for sale, Fair Value		4,027,594	[2]	$ 3,929,846	3,673,641	[3]
Low Income Housing Partnerships [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		65,754	[4]		76,982	[5]
Maximum loss exposure, contractual funding commitments		12,800			22,200
Liability Recognized		12,817	[4]		22,224	[5]
Low Income Housing Partnerships [Member] | Other Assets [Member]
Variable Interest Entity [Line Items]
Maximum loss exposure, current investments		52,900			54,800
Other Tax Credit Investments [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[6],[7]	20,321			21,359
Liability Recognized	[6],[7]	0			0
Other Tax Credit Investments [Member] | Other Assets [Member]
Variable Interest Entity [Line Items]
Maximum loss exposure, current investments		18,000			18,000
Small Issuer Trust Preferred Holdings [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[8]	333,309			344,291
Liability Recognized	[8]	0			0
On Balance Sheet Trust Preferred Securitization [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		49,370	[9]		50,037	[10]
Liability Recognized		64,803	[9]		64,137	[10]
Loans, net of unearned income		112,500			112,500
Term borrowings		64,800			64,100
Trading securities		1,700			1,700
Proprietary & Agency Residential Mortgage Securitizations [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		17,201	[11]		25,105	[12]
Liability Recognized		0	[11]		0	[12]
Trading securities		2,800			4,600
Total MSR recognized by FHN		300			600
Proprietary & Agency Residential Mortgage Securitizations [Member] | Other Assets [Member]
Variable Interest Entity [Line Items]
Aggregate servicing advances		14,100			19,900
Holdings Of Agency Mortgage Backed Securities [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[8]	4,586,329	[13]		4,030,604	[14]
Liability Recognized	[8]	0	[13]		0	[14]
Trading securities		700,000			549,200
Securities available for sale, Fair Value		3,800,000			3,500,000
Short Positions In Agency Mortgage Backed Securities [Member]
Variable Interest Entity [Line Items]
Liability Recognized	[15]	199			896
Commercial Loan Troubled Debt Restructurings [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure		36,354	[16]		29,280	[17],[18]
Maximum loss exposure, contractual funding commitments		100			100
Liability Recognized		0	[16]		0	[17],[18]
Loans, net of unearned income		36,300			$ 29,200
Sale Leaseback Transaction [Member]
Variable Interest Entity [Line Items]
Maximum Loss Exposure	[19]	11,827
Liability Recognized	[19]	$ 0

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[3] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[4] Maximum loss exposure represents $ 52 . 9 million of current investments and $ 12 . 8 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2017 .

[5] Maximum loss exposure represents $ 54.8 million of current investments and $ 22.2 million of accrued contractual funding commitments. Accrued funding commitments represent unconditional contractual obligations for future funding events, and are also recognized in Other liabilities. FHN currently expects to be required to fund these accrued commitments by the end of 2016 .

[6] A lia bility is not recognized as investments are written down over the life of the related tax credit

[7] Maximum loss exposure represe nts current investment balance. Of the initial investment, $ 18 . 0 million was funded through loans from community development enterprises

[8] Maximum loss exposure represents the value of current investments. A liability is not recognized as FHN is solely a ho lder of the trusts’ securities.

[9] Includes $ 112 . 5 million classified as Loans, net of unearned income, and $ 1 . 7 million classified as Trading securities which are offset by $ 64.8 million classified as Term borrowings.

[10] Includes $ 112.5 million classified as Loans, net of unearned income, and $ 1.7 million classified as Trading securities which are offset by $ 64 . 1 million classified as Term borrowings.

[11] Includes $ . 3 million classified as MSR , $ 2 . 8 million classified as Trading securities , and $ 14 . 1 million of aggregate servicing advances .

[12] Includes $ .6 million classified as MSR , $ 4 . 6 million classified as Trading securities , and $ 19 . 9 million of aggregate servicing advances .

[13] Includes $ .7 b illion classified as Trading securities and $ 3 . 8 billion cla ssified as Securities available-for- sale.

[14] Includes $ 549 . 2 million classified as Trading securities and $ 3 . 5 billion cla ssified as Securities available-for- sale.

[15] No exposure of loss due to the nature of FHN’s involveme nt

[16] Ma ximum loss exposure represents $ 36.3 million of current receivables and $ .1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring

[17] A liability is not recognized as the loans are the only variable interests held in the troubled commercial borrowers’ operations.

[18] Maximum loss exposure represents $ 29 . 2 million of current receivables and $ . 1 million of contractual funding commitments on loans related to commercial borrowers involved in a troubled debt restructuring.

[19] Maximum loss exposure represents the current loan balance plus additional funding commitments less amounts received from the buyer- lessor .

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Derivatives (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Collateral cash receivables	$ 77,600,000	$ 88,600,000	$ 77,600,000	$ 88,600,000
Collateral cash payables	42,100,000	47,400,000	42,100,000	47,400,000
Total trading revenues	$ 59,000,000	43,000,000	185,900,000	143,200,000
Noncallable senior debt maturing date	Dec. 15, 2020
Other Long-term Debt	$ 1,065,651,000	1,339,940,000	1,065,651,000	1,339,940,000	$ 1,312,677,000
Hedged amount of foreign currency denominated loans	2,600,000	2,800,000	2,600,000	2,800,000
Gain on extinguishment of debt	0	5,794,000	0	5,794,000
Visa Class B Shares [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liabilities related to sale	$ 6,500,000	4,800,000	6,500,000	4,800,000
First Tennessee Bank National Association [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Noncallable senior debt maturing date	Dec. 01, 2019
Long Term Debt Hedged With Fair Value Interest Rate Derivatives Using Shortcut Method [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net fair value of interest rate derivatives hedging		6,100,000		6,100,000
Other Long-term Debt		250,000,000		250,000,000
Long Term Debt Hedged With Fair Value Interest Rate Derivatives Using Long Haul Method [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net fair value of interest rate derivatives hedging	$ 7,700,000	2,100,000	7,700,000	2,100,000
Other Long-term Debt	500,000,000	500,000,000	500,000,000	500,000,000
Long Term Debt Hedged With Fair Value Interest Rate Derivatives Using Long Haul Method [Member] | First Tennessee Bank National Association [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net fair value of interest rate derivatives hedging	9,600,000	8,800,000	9,600,000	8,800,000
Other Long-term Debt	400,000,000	400,000,000	400,000,000	400,000,000
Subordinated Debentures Subject To Mandatory Redemption Amounts Redeemed [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Long-term Debt		200,000,000		200,000,000
Additional Derivative Agreements [Member] | Derivative Instruments With Accelerated Termination Provisions [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Collateral received	156,900,000	156,900,000	156,900,000	156,900,000
Securities posted collateral	28,400,000	24,600,000	28,400,000	24,600,000
Net fair value of derivative assets with adjustable posting thresholds	80,500,000	93,100,000	80,500,000	93,100,000
Net fair value of derivative liabilities with adjustable posting thresholds	23,800,000	20,200,000	23,800,000	20,200,000
Additional Derivative Agreements [Member] | Derivative Instruments With Adjustable Collateral Posting Thresholds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Collateral received	156,900,000	156,900,000	156,900,000	156,900,000
Securities posted collateral	68,400,000	79,900,000	68,400,000	79,900,000
Net fair value of derivative assets with adjustable posting thresholds	80,800,000	93,100,000	80,800,000	93,100,000
Net fair value of derivative liabilities with adjustable posting thresholds	66,700,000	$ 79,700,000	66,700,000	$ 79,700,000
Trust Preferred Loans [Member] | Cash Flow Hedge | Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Hedged held-to-maturity trust preferred loans principal balance	$ 250,000,000		$ 250,000,000

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Derivatives (Derivatives Associated with Fixed Income Trading Activities) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Customer Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	$ 1,891,507	$ 1,670,717
Assets	80,800	82,905
Liabilities	580	1,512
Offsetting Upstream Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	1,891,507	1,670,717
Assets	580	1,512
Liabilities	80,800	82,905
Put Option [Member] | LongMember
Derivative Instruments, Gain (Loss) [Line Items]
Notional	67,500	10,000
Assets	89	23
Liabilities	0	0
Forwards And Futures Purchased [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	4,183,225	3,458,150
Assets	10,092	15,561
Liabilities	965	353
Forwards And Futures Sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	4,528,079	3,578,542
Assets	1,667	774
Liabilities	$ 9,959	$ 15,568

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Derivatives (Derivatives Associated With Interest Rate Risk Management Activities) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Term borrowings		$ 1,065,651	$ 1,339,940	$ 1,065,651	$ 1,339,940	$ 1,312,677
Customer Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		1,891,507	1,670,717	1,891,507	1,670,717
Assets		80,800	82,905	80,800	82,905
Liabilities		580	1,512	580	1,512
Customer Interest Rate Contracts [Member] | Customer Interest Rate Contracts Hedging [Member] | Hedging Instruments And Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	[1]	1,204,975	790,321	1,204,975	790,321
Assets	[1]	45,096	34,507	45,096	34,507
Liabilities	[1]	89	210	89	210
Gains/(Losses)	[1]	(1,964)	10,558	18,749	8,643
Offsetting Upstream Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		1,891,507	1,670,717	1,891,507	1,670,717
Assets		580	1,512	580	1,512
Liabilities		80,800	82,905	80,800	82,905
Offsetting Upstream Interest Rate Contracts [Member] | Customer Interest Rate Contracts Hedging [Member] | Hedging Instruments And Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	[1]	1,204,975	790,321	1,204,975	790,321
Assets	[1]	89	210	89	210
Liabilities	[1]	45,596	35,007	45,596	35,007
Gains/(Losses)	[1]	1,964	(10,558)	(18,749)	(8,643)
Interest Rate Swap [Member] | Debt [Member] | Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional	[2]	900,000	1,150,000	900,000	1,150,000
Assets	[2]	17,257	16,960	17,257	16,960
Gains/(Losses)	[2]	(7,254)	3,247	19,352	(6,593)
Long Term Debt [Member] | Debt [Member] | Hedged Items [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Term borrowings	[2],[3]	900,000	1,150,000	900,000	1,150,000
Gains/(Losses) related to term borrowings	[2],[4]	$ 7,152	$ (3,167)	$ (19,059)	$ 6,645

[1] Gains/losses included in the All o ther expense section of the Consolidated Condensed Statements of Income.

[2] Gains/losses included in the All other income and commissions section of the Consolidated Condensed Statements of Income.

[3] Represents par value of term borrowings being hedged.

[4] Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

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Derivatives (Derivatives Associated With Cash Flow Hedges) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)		Sep. 30, 2016 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Gain/Loss expected to be reclassified to earnings in the next twelve months	$ 1,200
Hedging Instruments [Member] | Interest Rate Swap [Member] | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Notional	250,000	[1]	$ 250,000	[1]
Assets	5,061	[1]	5,061	[1]
Gains/(Losses)	(2,545)	[1],[2]	5,061	[1],[2]
Hedged Items [Member] | Trust Preferred Loans [Member] | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Held-To-Maturity Trust Preferred Loans Principal Balance	$ 250,000		$ 250,000

[1] After tax gains/(losses) included within AOCI.

[2] Includes approximately $ 1.2 million expected to be reclassified into earnings in the next twelve months.

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Derivatives (Schedule Of Derivative Activities Associated With Trust Preferred Loans) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Loans, net of unearned income	[1]	$ 19,555,787	$ 16,725,492	$ 19,555,787	$ 16,725,492	$ 17,686,502
Hedging Instruments [Member] | Loan Portfolio Hedging [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional		6,500	6,500	6,500	6,500
Interest Rate Derivative Liabilities at Fair Value		287	600	287	600
Gains/(Losses)		93	40	201	144
Hedged Items [Member] | Loan Portfolio Hedging [Member] | Trust Preferred Loans [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loans, net of unearned income	[2],[3]	6,500	6,500	6,500	6,500
Gains/(Losses)	[2],[4]	$ (92)	$ (39)	$ (199)	$ (142)

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] Assets included in the Loans, net of unearned income section of the Consolidated Condensed Statements of Condition.

[3] Represents principal balance being hedged.

[4] Represents gains and losses attributable to changes in fair value due to interest rate risk as designated in ASC 815-20 hedging relationships.

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Derivative Assets And Collateral Received (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Derivative [Line Items]
Gross amounts of recognized assets		$ 160,736	$ 104,365	$ 152,548
Derivative Assets not subject to master netting agreements		11,900		16,500
Derivatives, Interest Rate Contracts | Subject to Master Netting Agreements
Derivative [Line Items]
Gross amounts of recognized assets	[1]	148,883		136,098
Gross amounts offset in the Statement of Condition	[1]	0		0
Net amounts of assets presented in the Statement of Condition	[1],[2]	148,883		136,098
Derivative liabilities available for offset	[1]	(8,823)		(9,748)
Collateral Received	[1]	(125,095)		(121,401)
Net amount	[1]	$ 14,965		$ 4,949

[1] 201 6 and 2015 are comprised entirely of interest rate derivative contracts.

[2] In cluded in Derivative a ssets on the Consolidated Condensed Statements of Condition. As of September 30 , 2016 and 2015 , $ 11 . 9 million and $ 16.5 million, respectively, of derivative assets (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.

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Derivative Liabilities and Collateral Pledged (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Derivative [Line Items]
Gross amounts of recognized liabilities		$ 144,829	$ 108,339	$ 140,965
Derivative Liabilities not subject to master netting agreements		17,500		20,700
Derivatives, Interest Rate Contracts | Subject to Master Netting Agreements
Derivative [Line Items]
Gross amounts of recognized liabilities	[1]	127,352		120,234
Gross amounts offset in the Statement of Condition	[1]	0		0
Net amounts of liabilities presented in the Statement of Condition	[1],[2]	127,352		120,234
Derivative assets available for offset	[1]	(8,823)		(9,748)
Collateral pledged	[1]	(57,298)		(78,211)
Net amount	[1]	$ 61,231		$ 32,275

[1] 2016 and 2015 are comprised entirely of interest rate derivative contracts.

[2] In cluded in Derivative l iabilities on the Consolidated Condensed Statements of Condition. As of September 30 , 2016 and 2015 , $ 17 . 5 million and $ 20.7 million, respectively, of derivative liabilities (primarily fixed income forward contracts) have been excluded from these tables because they are generally not subject to master netting or similar agreements.

XML

Securities Purchased Under Agreements To Resell And Collateral Pledged By Company (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Securities Purchased under Agreements to Resell [Abstract]
Gross amounts of recognized assets	$ 802,815		$ 793,098
Gross amounts offset in the Statement of Condition	0		0
Net amounts of assets presented in the Statement of Condition	802,815	$ 615,773	793,098
Offsetting securities sold under agreements to repurchase	(1,632)		(2,909)
Securities collateral (not recognized on FHN's Statement of Condition)	(792,851)		(782,844)
Net amount	$ 8,332		$ 7,345

XML

Securities Sold Under Agreements To Repurchase And Collateral Pledged By Counterparties (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Securities Sold Under Agreements To Repurchase [Abstract]
Gross amounts of recognized liabilities	$ 341,998		$ 332,329
Gross amounts offset in the statement of Condition	0		0
Net amounts of liabilities presented in the Statement of Condition	341,998	$ 338,133	332,329
Offsetting securities purchased under agreements to resell	(1,632)		(2,909)
Securities Collateral	(340,047)		(329,420)
Net amount	$ 319		$ 0

XML

Schedule of the Remaining Contractual Maturity by Collateral Type of Securities Sold Under Agreements To Repurchase (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 341,998	$ 338,133	$ 332,329
U.S. treasuries
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	38,382		23,812
Government agency issued MBS
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	289,341
Government agency issued CMO
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	14,275		308,517
Overnight and Continuous
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	327,723		321,390
Overnight and Continuous | U.S. treasuries
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	38,382		23,812
Overnight and Continuous | Government agency issued MBS
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	289,341
Overnight and Continuous | Government agency issued CMO
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0		297,578
Up to 30 Days
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	14,275		10,939
Up to 30 Days | U.S. treasuries
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0		0
Up to 30 Days | Government agency issued MBS
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	0
Up to 30 Days | Government agency issued CMO
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities sold under agreements to repurchase	$ 14,275		$ 10,939

XML

Fair Value Of Assets And Liabilities (Narrative) (Details) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) number	Sep. 30, 2015 USD ($)
Fair Value Of Assets And Liabilities [Abstract]
Gain/(loss) on instrument specific credit risk	$ 0.5		$ (0.2)	$ 0.7	$ 0.5
Number of levels assets and liabilities are grouped in | number				3
Long-lived asset impairment		$ 3.7

XML

Fair Value Of Assets And Liabilities (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)	Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	$ 1,320,535,000		$ 881,450,000	$ 1,229,180,000
Loans held-for-sale	22,750,000			26,789,000
Securities available for sale, Fair Value	4,027,594,000	[1]	$ 3,929,846,000	3,673,641,000	[2]
Total other assets	193,874,000			180,513,000
Total assets	5,403,396,000			4,954,410,000
Total other liabilities	144,829,000			140,965,000
Total liabilities	847,055,000			929,528,000
Recurring
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	3,866,237,000			3,517,928,000
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	0			0
Securities available for sale, Fair Value	24,636,000			25,840,000
Total other assets	43,651,000			42,307,000
Total assets	68,287,000			68,147,000
Total other liabilities	10,924,000			15,921,000
Total liabilities	10,924,000			15,921,000
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	214,000			0
Securities available for sale, Fair Value	3,841,601,000			3,489,142,000
Total other assets	148,977,000			136,213,000
Total assets	5,308,543,000			4,849,932,000
Total other liabilities	127,365,000			120,234,000
Total liabilities	829,591,000			908,797,000
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	22,536,000			26,789,000
Securities available for sale, Fair Value	0			2,946,000
Total other assets	1,246,000			1,993,000
Total assets	26,566,000			36,331,000
Total other liabilities	6,540,000			4,810,000
Total liabilities	6,540,000			4,810,000
U.S. treasuries
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	100,000			100,000
U.S. treasuries | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
U.S. treasuries | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	100,000			100,000
U.S. treasuries | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Government Agency Issued Mortgage-Backed Securities ("MBS")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	1,940,357,000			945,951,000
Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	1,940,357,000			945,951,000
Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	1,901,144,000			2,535,436,000
Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	1,901,144,000			2,535,436,000
Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Other U.S. Government Agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				1,446,000
Other U.S. Government Agencies | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				0
Other U.S. Government Agencies | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				0
Other U.S. Government Agencies | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				1,446,000
States And Municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				9,155,000
States And Municipalities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				0
States And Municipalities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				7,655,000
States And Municipalities | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value				1,500,000
Equity, Mutual Funds, And Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	24,636,000			25,840,000
Equity, Mutual Funds, And Other | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	24,636,000			25,840,000
Equity, Mutual Funds, And Other | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Equity, Mutual Funds, And Other | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities available for sale, Fair Value	0			0
Mortgage Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	1,246,000			1,993,000
Mortgage Servicing Rights | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Mortgage Servicing Rights | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Mortgage Servicing Rights | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	1,246,000			1,993,000
Deferred Compensation Assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	31,892,000			25,972,000
Deferred Compensation Assets | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	31,892,000			25,972,000
Deferred Compensation Assets | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Deferred Compensation Assets | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Derivatives, Forwards And Futures
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	11,759,000			16,335,000
Total other liabilities	10,924,000			15,921,000
Derivatives, Forwards And Futures | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	11,759,000			16,335,000
Total other liabilities	10,924,000			15,921,000
Derivatives, Forwards And Futures | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Total other liabilities	0			0
Derivatives, Forwards And Futures | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Total other liabilities	0			0
Derivatives, Interest Rate Contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	148,972,000			136,121,000
Total other liabilities	127,352,000			120,234,000
Derivatives, Interest Rate Contracts | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Total other liabilities	0			0
Derivatives, Interest Rate Contracts | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	148,972,000			136,121,000
Total other liabilities	127,352,000			120,234,000
Derivatives, Interest Rate Contracts | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Total other liabilities	0			0
Derivatives, Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	5,000			92,000
Total other liabilities	6,553,000			4,810,000
Derivatives, Other | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Total other liabilities	0			0
Derivatives, Other | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	5,000			92,000
Total other liabilities	13,000			0
Derivatives, Other | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other assets	0			0
Total other liabilities	6,540,000			4,810,000
Fixed Income
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,317,756,000			1,224,582,000
Total trading liabilities - fixed income	702,226,000			788,563,000
Fixed Income | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,317,751,000			1,224,577,000
Total trading liabilities - fixed income	702,226,000			788,563,000
Fixed Income | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	5,000			5,000
Total trading liabilities - fixed income	0			0
Fixed Income | U.S. treasuries
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	110,538,000			97,211,000
Total trading liabilities - fixed income	508,895,000			478,759,000
Fixed Income | U.S. treasuries | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | U.S. treasuries | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	110,538,000			97,211,000
Total trading liabilities - fixed income	508,895,000			478,759,000
Fixed Income | U.S. treasuries | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	478,756,000			265,290,000
Total trading liabilities - fixed income	199,000			1,481,000
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	478,756,000			265,290,000
Total trading liabilities - fixed income	199,000			1,481,000
Fixed Income | Government Agency Issued Mortgage-Backed Securities ("MBS") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO")
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	266,284,000			283,927,000
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	266,284,000			283,927,000
Fixed Income | Government Agency Issued Collateralized Mortgage Obligations ("CMO") | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Fixed Income | Other U.S. Government Agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	121,460,000			113,739,000
Total trading liabilities - fixed income	7,934,000			6,482,000
Fixed Income | Other U.S. Government Agencies | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | Other U.S. Government Agencies | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	121,460,000			113,739,000
Total trading liabilities - fixed income	7,934,000			6,482,000
Fixed Income | Other U.S. Government Agencies | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | States And Municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	93,448,000			65,255,000
Total trading liabilities - fixed income	143,000
Fixed Income | States And Municipalities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0
Fixed Income | States And Municipalities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	93,448,000			65,255,000
Total trading liabilities - fixed income	143,000
Fixed Income | States And Municipalities | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0
Fixed Income | Trading Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities				16,943,000
Fixed Income | Trading Loans | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities				0
Fixed Income | Trading Loans | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities				16,943,000
Fixed Income | Trading Loans | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities				0
Fixed Income | Corporate And Other Debt
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	246,158,000			381,475,000
Total trading liabilities - fixed income	185,055,000			301,841,000
Fixed Income | Corporate And Other Debt | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Total trading liabilities - fixed income	0			0
Fixed Income | Corporate And Other Debt | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	246,153,000			381,470,000
Total trading liabilities - fixed income	185,055,000			301,841,000
Fixed Income | Corporate And Other Debt | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	5,000			5,000
Total trading liabilities - fixed income	0			0
Fixed Income | Equity, Mutual Funds, And Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,112,000			742,000
Fixed Income | Equity, Mutual Funds, And Other | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Fixed Income | Equity, Mutual Funds, And Other | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	1,112,000			742,000
Fixed Income | Equity, Mutual Funds, And Other | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Mortgage Banking
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	2,779,000			4,598,000
Mortgage Banking | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Mortgage Banking | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	0			0
Mortgage Banking | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading securities	$ 2,779,000			$ 4,598,000

[1] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[2] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

XML

Fair Value Of Assets And Liabilities (Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Trading Account Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		$ 2,826	$ 4,929	$ 4,377	$ 5,642
Net income		304	57	506	296
Other comprehensive income			0		0
Purchases, assets		0	0	0	0
Sales, assets				0
Settlements, assets		(346)	(383)	(2,099)	(1,335)
Net transfers into/(out of) Level 3, assets		0	0	0	0
Ending Balance		2,784	4,603	2,784	4,603
Net unrealized gains/(losses) included in net income	[1]	244	57	324	296
Loans Held For Sale [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		25,738	26,525	27,418	27,910
Net income		1,604	803	2,375	2,193
Other comprehensive income			0		0
Purchases, assets		198	1,902	673	3,080
Sales, assets				0
Settlements, assets		(2,146)	(1,664)	(4,643)	(4,483)
Net transfers into/(out of) Level 3, assets	[2]	(2,858)	(777)	(3,287)	(1,911)
Ending Balance		22,536	26,789	22,536	26,789
Net unrealized gains/(losses) included in net income	[1]	1,604	803	2,375	2,193
AFS Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		1,500	3,060	1,500	3,307
Net income		0	0	0	0
Other comprehensive income			(16)		(44)
Purchases, assets		0	0	0	0
Sales, assets				0
Settlements, assets		(1,500)	(98)	(1,500)	(317)
Net transfers into/(out of) Level 3, assets		0	0	0	0
Ending Balance		0	2,946	0	2,946
Net unrealized gains/(losses) included in net income		0	0	0	0
Mortgage Servicing Rights Net [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		1,406	2,158	1,841	2,517
Net income		0	0	31	0
Other comprehensive income			0		0
Purchases, assets		0	0	0	0
Sales, assets				(205)
Settlements, assets		(160)	(165)	(421)	(524)
Net transfers into/(out of) Level 3, assets		0	0	0	0
Ending Balance		1,246	1,993	1,246	1,993
Net unrealized gains/(losses) included in net income		0	0	0	0
Net Derivative Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		(6,835)	(4,810)	(4,810)	(5,240)
Net income		(4)	(302)	(2,627)	(466)
Other comprehensive income			0		0
Purchases, liabilities		0	0	0	0
Sales, liabilities				0
Settlements, liabilities		299	302	897	896
Net transfers in/(out) level 3, liabilities		0	0	0	0
Ending Balance		(6,540)	(4,810)	(6,540)	(4,810)
Net unrealized gains/(losses) included in other expense	[3]	$ (4)	$ (302)	$ (2,627)	$ (466)

[1] Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.

[2] Transfers out of recurring loans held-for-sale level 3 balances generally r eflect movements out of recurring loans held-for-sale and into real estate acquired by foreclosure (level 3 nonrecurring).

[3] Included in Other expense.

XML

Fair Value Of Assets And Liabilities (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		$ 22,750	$ 26,789	$ 22,750	$ 26,789
Loans, net of unearned income	[1]	19,555,787	16,725,492	19,555,787	16,725,492	$ 17,686,502
Real estate acquired by foreclosure	[2]	18,945	35,332	18,945	35,332	$ 33,063
Other assets		193,874	180,513	193,874	180,513
Net gains/(losses), Loans, net of unearned income	[3]	461	1,195	(3,249)	2,729
Net gains/(losses), Real estate acquired by foreclosure	[4]	(711)	(706)	(1,561)	(2,366)
Net gains/(losses), Other assets	[5]	(788)	(439)	(2,325)	(1,383)
Gain (loss) on financial assets measured on non-recurring basis		(1,028)	60	(7,118)	(972)
Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	31,797	27,898	31,797	27,898
Real estate acquired by foreclosure	[4]	13,678	25,872	13,678	25,872
Other assets	[5]	28,285	27,825	28,285	27,825
Fair Value Inputs Level1 [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0	0	0	0
Other assets		43,651	42,307	43,651	42,307
Fair Value Inputs Level1 [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	0	0	0	0
Real estate acquired by foreclosure	[4]	0	0	0	0
Other assets	[5]	0	0	0	0
Fair Value Inputs Level2 [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		214	0	214	0
Other assets		148,977	136,213	148,977	136,213
Fair Value Inputs Level2 [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	0	0	0	0
Real estate acquired by foreclosure	[4]	0	0	0	0
Other assets	[5]	0	0	0	0
Fair Value Inputs Level3 [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		22,536	26,789	22,536	26,789
Other assets		1,246	1,993	1,246	1,993
Fair Value Inputs Level3 [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans, net of unearned income	[3]	31,797	27,898	31,797	27,898
Real estate acquired by foreclosure	[4]	13,678	25,872	13,678	25,872
Other assets	[5]	28,285	27,825	28,285	27,825
First Mortgage [Member]
Fair Value Of Assets And Liabilities [Line Items]
Net gains/(losses), Loans held for sale		10	10	17	48
First Mortgage [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		671	726	671	726
First Mortgage [Member] | Fair Value Inputs Level1 [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0	0	0	0
First Mortgage [Member] | Fair Value Inputs Level2 [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		0	0	0	0
First Mortgage [Member] | Fair Value Inputs Level3 [Member] | Fair Value Measurements Nonrecurring [Member]
Fair Value Of Assets And Liabilities [Line Items]
Loans held-for-sale		$ 671	$ 726	$ 671	$ 726

[1] September 30 , 2016 and 2015 and December 31, 2015 include $30.3 million, $30.7 million and $29.7 million, respectively, of held-to-maturity consumer mortgage loans secured by residential real estate properties in pr ocess of foreclosure.

[2] September 30 , 2016 and 2015 an d December 31, 2015 include $9.7 million , $ 15.6 million and $14.6 million, respectively, of foreclosed residential real estate.

[3] Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.

[4] Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.

[5] Represents tax credit investments account ed for under the equity method .

XML

Fair Value Of Assets And Liabilities (Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements) (Details) - USD ($)		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value Inputs Assets Quantitative Information [Line Items]
Trading securities		$ 1,320,535,000	$ 1,229,180,000	$ 881,450,000
Loans held-for-sale		22,750,000	26,789,000
Other Liabilities, Fair Value Disclosure		144,829,000	140,965,000
Real estate acquired by foreclosure	[1]	18,945,000	35,332,000	33,063,000
Other assets		193,874,000	180,513,000
Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Trading securities		2,779,000	4,598,000
Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Real estate acquired by foreclosure		9,700,000	15,600,000	$ 14,600,000
Non Recurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Real estate acquired by foreclosure	[2]	13,678,000	25,872,000
Other assets	[3]	28,285,000	27,825,000
Non Recurring | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		671,000	726,000
Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Other Liabilities, Fair Value Disclosure		6,553,000	4,810,000
Other assets		5,000	92,000
Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		22,536,000	26,789,000
Other Liabilities, Fair Value Disclosure		6,540,000	4,810,000
Other assets		1,246,000	1,993,000
Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Trading securities		2,779,000	4,598,000
Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		23,207,000	27,515,000
Level 3 | Non Recurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans, net of unearned income	[4]	31,797,000	27,898,000
Real estate acquired by foreclosure	[2]	13,678,000	25,872,000
Other assets	[3]	28,285,000	27,825,000
Level 3 | Non Recurring | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loans held-for-sale		671,000	726,000
Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Other Liabilities, Fair Value Disclosure		6,540,000	4,810,000
Other assets		0	0
Other Assets | Level 3 | Non Recurring
Fair Value Inputs Assets Quantitative Information [Line Items]
Other assets	[3]	$ 28,285,000	$ 27,825,000
Discounted Cash Flow | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Discounted Cash Flow | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Discounted Cash Flow | Derivative Liabilities, Other | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Discounted Cash Flow | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Discounted cash flow	Discounted cash flow
Appraisals From Comparable Properties | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Appraisals from comparable properties	Appraisals from comparable properties
Appraisals From Comparable Properties | Real Estate Acquired By Foreclosure | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Appraisals from comparable properties	Appraisals from comparable properties
Appraisals From Comparable Properties | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Appraisals from comparable properties	Appraisals from comparable properties
Other Collateral Valuations | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Valuation Techniques		Other collateral valuations	Other collateral valuations
Maximum | Discounted Cash Flow | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Visa covered litigation resolution amount		$ 5,200,000,000	$ 5,500,000,000
Maximum | Discounted Cash Flow | 34% - 46% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		46.00%
Maximum | Discounted Cash Flow | 43% - 45% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds			45.00%
Maximum | Discounted Cash Flow | 30% - 57% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate		57.00%
Maximum | Discounted Cash Flow | 6% - 59% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate			59.00%
Maximum | Discounted Cash Flow | 2% - 20% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		20.00%	20.00%
Maximum | Discounted Cash Flow | 5% - 15% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		15.00%	15.00%
Maximum | Discounted Cash Flow | 47% - 57% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Foreclosure losses		57.00%
Maximum | Discounted Cash Flow | 45% - 55% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Foreclosure losses			55.00%
Maximum | Discounted Cash Flow | 5% - 70% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		70.00%
Maximum | Discounted Cash Flow | 20% - 70% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends			70.00%
Maximum | Discounted Cash Flow | 35% - 100% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		100.00%	100.00%
Maximum | Discounted Cash Flow | 5% - 12% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Draw rate		12.00%	12.00%
Maximum | Discounted Cash Flow | 10% - 30% Values Utilized | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Probability of resolution scenarios		30.00%
Maximum | Discounted Cash Flow | 5% - 25% Values Utilized | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Probability of resolution scenarios			25.00%
Maximum | Discounted Cash Flow | 27 Months To 57 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution		57 months
Maximum | Discounted Cash Flow | 6 Months to 42 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution			42 months
Maximum | Discounted Cash Flow | 0% - 15% Adjustment to Yield | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustments to current sales yields for specific properties		15.00%	15.00%
Maximum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		10.00%	10.00%
Maximum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Real Estate Acquired By Foreclosure | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for value changes since appraisal		10.00%	10.00%
Maximum | Appraisals From Comparable Properties | 0% - 25% Of Appraisal | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		25.00%	25.00%
Maximum | Other Collateral Valuations | 20% - 50% Of Gross Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrowing base certificates adjustment		50.00%	50.00%
Maximum | Other Collateral Valuations | 0% - 25% Of Reported Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Financial statements/auction values adjustment		25.00%	25.00%
Minimum | Discounted Cash Flow | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Visa covered litigation resolution amount		$ 4,400,000,000	$ 4,500,000,000
Minimum | Discounted Cash Flow | 34% - 46% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		34.00%
Minimum | Discounted Cash Flow | 43% - 45% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds			43.00%
Minimum | Discounted Cash Flow | 30% - 57% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate		30.00%
Minimum | Discounted Cash Flow | 6% - 59% Values Utilized | Trading Securities | Level 3 | Mortgage Banking
Fair Value Inputs Assets Quantitative Information [Line Items]
Discount rate			6.00%
Minimum | Discounted Cash Flow | 2% - 20% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		2.00%	2.00%
Minimum | Discounted Cash Flow | 5% - 15% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Prepayment Speeds		5.00%	5.00%
Minimum | Discounted Cash Flow | 47% - 57% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Foreclosure losses		47.00%
Minimum | Discounted Cash Flow | 45% - 55% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate
Fair Value Inputs Assets Quantitative Information [Line Items]
Foreclosure losses			45.00%
Minimum | Discounted Cash Flow | 5% - 70% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		5.00%
Minimum | Discounted Cash Flow | 20% - 70% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | First Mortgages
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends			20.00%
Minimum | Discounted Cash Flow | 35% - 100% Of UPB | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Loss severity trends		35.00%	35.00%
Minimum | Discounted Cash Flow | 5% - 12% Values Utilized | Loans Held-For-Sale | Level 3 | Residential Real Estate | Home Equity
Fair Value Inputs Assets Quantitative Information [Line Items]
Draw rate		5.00%	5.00%
Minimum | Discounted Cash Flow | 10% - 30% Values Utilized | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Probability of resolution scenarios		10.00%
Minimum | Discounted Cash Flow | 5% - 25% Values Utilized | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Probability of resolution scenarios			5.00%
Minimum | Discounted Cash Flow | 27 Months To 57 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution		27 months
Minimum | Discounted Cash Flow | 6 Months to 42 Months | Derivative Liabilities, Other | Level 3 | Derivatives, Other
Fair Value Inputs Assets Quantitative Information [Line Items]
Time until resolution			6 months
Minimum | Discounted Cash Flow | 0% - 15% Adjustment to Yield | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustments to current sales yields for specific properties		0.00%	0.00%
Minimum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		0.00%	0.00%
Minimum | Appraisals From Comparable Properties | 0% - 10% of Appraisal | Real Estate Acquired By Foreclosure | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Adjustment for value changes since appraisal		0.00%	0.00%
Minimum | Appraisals From Comparable Properties | 0% - 25% Of Appraisal | Other Assets | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Marketability adjustments for specific properties		0.00%	0.00%
Minimum | Other Collateral Valuations | 20% - 50% Of Gross Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Borrowing base certificates adjustment		20.00%	20.00%
Minimum | Other Collateral Valuations | 0% - 25% Of Reported Value | Loans, Net Of Unearned Income | Level 3
Fair Value Inputs Assets Quantitative Information [Line Items]
Financial statements/auction values adjustment		0.00%	0.00%

[1] September 30 , 2016 and 2015 an d December 31, 2015 include $9.7 million , $ 15.6 million and $14.6 million, respectively, of foreclosed residential real estate.

[2] Represents the fair value and related losses of foreclosed properties that were measured subsequent to their initial classification as foreclosed assets. Balance excludes foreclosed real estate related to government insured mortgages.

[3] Represents tax credit investments account ed for under the equity method .

[4] Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.

XML

Fair Value Of Assets And Liabilities (Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	$ 22,750	$ 26,789
Fair Value Carrying Amount
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	22,750	26,789
Nonaccrual loans	6,638	7,206
Loans 90 days or more past due and still accruing	22	2,677
Aggregate Unpaid Principal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	34,241	41,350
Nonaccrual loans	12,850	13,712
Loans 90 days or more past due and still accruing	26	3,822
Fair Value Carrying Amount Less Aggregate Unpaid Principal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans held-for-sale	(11,491)	(14,561)
Nonaccrual loans	(6,212)	(6,506)
Loans 90 days or more past due and still accruing	$ (4)	$ (1,145)

XML

Fair Value Of Assets And Liabilities (Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Mortgage Banking Noninterest Income | Loans Held-For-Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Changes in fair value included in net income	$ 1,604	$ 803	$ 2,375	$ 2,193

XML

Fair Value Of Assets And Liabilities (Summary Of Book Value And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015	Sep. 30, 2015
Assets:
Total loans, net of unearned income and allowance for loan losses		$ 19,354,230		$ 17,476,260	$ 16,514,678
Short-term financial assets:
Interest-bearing cash		219,834		602,836	596,689
Federal funds sold		27,097		114,479	64,438
Securities purchased under agreements to resell		802,815		615,773	793,098
Trading securities		1,320,535		881,450	1,229,180
Loans held-for-sale	[1]	155,215		126,342	124,308
Securities available-for-sale		4,027,594	[2]	3,929,846	3,673,641	[3]
Securities held-to-maturity		14,340		14,320	4,313
Derivative assets		160,736		104,365	152,548
Other assets:
Total other assets		193,874			180,513
Nonearning assets:
Cash and due from banks		327,639		300,811	256,342
Fixed income receivables		91,997		63,660	83,547
Total assets		28,449,222		26,192,637	25,386,073
Deposits:
Total deposits		21,574,180		19,967,478	18,865,220
Trading liabilities		702,226		566,019	788,563
Short-term financial liabilities:
Federal funds purchased		538,284		464,166	520,992
Securities sold under agreements to repurchase		341,998		338,133	332,329
Other short-term borrowings		792,736		137,861	99,887
Term borrowings:
Total term borrowings		1,065,651		1,312,677	1,339,940
Derivative liabilities		144,829		108,339	140,965
Other noninterest-bearing liabilities:
Fixed income payables		68,897		23,072	95,346
Total liabilities		25,704,640		$ 23,553,051	22,805,828
Carrying Reported Amount Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		19,354,230			16,514,678
Short-term financial assets:
Interest-bearing cash		219,834			596,689
Federal funds sold		27,097			64,438
Securities purchased under agreements to resell		802,815			793,098
Total short-term financial assets		1,049,746			1,454,225
Trading securities	[4]	1,320,535			1,229,180
Loans held-for-sale		155,215			124,308	[4]
Securities available-for-sale	[4]	4,027,594	[5]		3,673,641	[6]
Securities held-to-maturity		14,340			4,313
Derivative assets	[4]	160,736			152,548
Other assets:
Tax credit investments		90,824			98,341
Deferred compensation assets		31,892			25,972
Total other assets		122,716			124,313
Nonearning assets:
Cash and due from banks		327,639			256,342
Fixed income receivables		91,997			83,547
Accrued interest receivable		64,511			65,956
Total nonearning assets		484,147			405,845
Total assets		26,689,259			23,683,051
Deposits:
Defined maturity		1,325,079			1,033,896
Undefined maturity		20,249,101			17,831,324
Total deposits		21,574,180			18,865,220
Trading liabilities	[4]	702,226			788,563
Short-term financial liabilities:
Federal funds purchased		538,284			520,992
Securities sold under agreements to repurchase		341,998			332,329
Other short-term borrowings		792,736			99,887
Total short-term financial liabilities		1,673,018			953,208
Term borrowings:
Real estate investment trust-preferred		46,015			45,947
Term borrowings - new market tax credit investment		18,000			18,000
Borrowings secured by residential real estate		26,062			48,491
Other long term borrowings		975,574			1,227,502
Total term borrowings		1,065,651			1,339,940
Derivative liabilities	[4]	144,829			140,965
Other noninterest-bearing liabilities:
Fixed income payables		68,897			95,346
Accrued interest payable		15,376			25,358
Total other noninterest-bearing liabilities		84,273			120,704
Total liabilities		25,244,177			22,208,600
Carrying Reported Amount Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		12,031,432			9,538,832
Carrying Reported Amount Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		2,033,175			1,462,696
Carrying Reported Amount Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		4,525,136			4,731,464
Carrying Reported Amount Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		419,511			443,817
Carrying Reported Amount Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		344,976			337,869
Estimate Of Fair Value Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		19,159,049			16,209,602
Short-term financial assets:
Interest-bearing cash		219,834			596,689
Federal funds sold		27,097			64,438
Securities purchased under agreements to resell		802,815			793,098
Total short-term financial assets		1,049,746			1,454,225
Trading securities	[4]	1,320,535			1,229,180
Loans held-for-sale		155,215			124,308	[4]
Securities available-for-sale	[4]	4,027,594	[5]		3,673,641	[6]
Securities held-to-maturity		15,042			5,404
Derivative assets	[4]	160,736			152,548
Other assets:
Tax credit investments		89,879			58,030
Deferred compensation assets		31,892			25,972
Total other assets		121,771			84,002
Nonearning assets:
Cash and due from banks		327,639			256,342
Fixed income receivables		91,997			83,547
Accrued interest receivable		64,511			65,956
Total nonearning assets		484,147			405,845
Total assets		26,493,835			23,338,755
Deposits:
Defined maturity		1,334,178			1,039,007
Undefined maturity		20,249,101			17,831,324
Total deposits		21,583,279			18,870,331
Trading liabilities	[4]	702,226			788,563
Short-term financial liabilities:
Federal funds purchased		538,284			520,992
Securities sold under agreements to repurchase		341,998			332,329
Other short-term borrowings		792,736			99,887
Total short-term financial liabilities		1,673,018			953,208
Term borrowings:
Real estate investment trust-preferred		49,350			49,350
Term borrowings - new market tax credit investment		18,240			18,158
Borrowings secured by residential real estate		24,759			41,848
Other long term borrowings		965,124			1,214,410
Total term borrowings		1,057,473			1,323,766
Derivative liabilities	[4]	144,829			140,965
Other noninterest-bearing liabilities:
Fixed income payables		68,897			95,346
Accrued interest payable		15,376			25,358
Total other noninterest-bearing liabilities		84,273			120,704
Total liabilities		25,245,098			22,197,537
Loan commitments		1,998			2,694
Standby and other commitments		3,867			4,424
Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		11,937,281			9,473,702
Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		2,009,820			1,447,848
Estimate Of Fair Value Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		4,455,675			4,535,337
Estimate Of Fair Value Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		410,302			413,188
Estimate Of Fair Value Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		345,971			339,527
Contractual Amount [Member]
Other noninterest-bearing liabilities:
Loan commitments		8,012,345			7,962,431
Standby and other commitments		287,499			281,740
Fair Value Inputs Level1 [Member]
Short-term financial assets:
Securities available-for-sale		24,636			25,840
Other assets:
Total other assets		43,651			42,307
Fair Value Inputs Level1 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Short-term financial assets:
Interest-bearing cash		219,834			596,689
Federal funds sold		0			0
Securities purchased under agreements to resell		0			0
Total short-term financial assets		219,834			596,689
Trading securities	[4]	0			0
Loans held-for-sale		0			0	[4]
Securities available-for-sale	[4]	24,636	[5]		25,840	[6]
Securities held-to-maturity		0			0
Derivative assets	[4]	11,759			16,335
Other assets:
Tax credit investments		0			0
Deferred compensation assets		31,892			25,972
Total other assets		31,892			25,972
Nonearning assets:
Cash and due from banks		327,639			256,342
Fixed income receivables		0			0
Accrued interest receivable		0			0
Total nonearning assets		327,639			256,342
Total assets		615,760			921,178
Deposits:
Defined maturity		0			0
Undefined maturity		0			0
Total deposits		0			0
Trading liabilities	[4]	0			0
Short-term financial liabilities:
Federal funds purchased		0			0
Securities sold under agreements to repurchase		0			0
Other short-term borrowings		0			0
Total short-term financial liabilities		0			0
Term borrowings:
Real estate investment trust-preferred		0			0
Term borrowings - new market tax credit investment		0			0
Borrowings secured by residential real estate		0			0
Other long term borrowings		0			0
Total term borrowings		0			0
Derivative liabilities	[4]	10,924			15,921
Other noninterest-bearing liabilities:
Fixed income payables		0			0
Accrued interest payable		0			0
Total other noninterest-bearing liabilities		0			0
Total liabilities		10,924			15,921
Fair Value Inputs Level1 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level1 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level1 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level1 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level1 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level2 [Member]
Short-term financial assets:
Securities available-for-sale		3,841,601			3,489,142
Other assets:
Total other assets		148,977			136,213
Fair Value Inputs Level2 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Short-term financial assets:
Interest-bearing cash		0			0
Federal funds sold		27,097			64,438
Securities purchased under agreements to resell		802,815			793,098
Total short-term financial assets		829,912			857,536
Trading securities	[4]	1,317,751			1,224,577
Loans held-for-sale		46,681			0	[4]
Securities available-for-sale	[4]	3,841,601	[5]		3,489,142	[6]
Securities held-to-maturity		0			0
Derivative assets	[4]	148,977			136,213
Other assets:
Tax credit investments		0			0
Deferred compensation assets		0			0
Total other assets		0			0
Nonearning assets:
Cash and due from banks		0			0
Fixed income receivables		91,997			83,547
Accrued interest receivable		64,511			65,956
Total nonearning assets		156,508			149,503
Total assets		6,341,430			5,856,971
Deposits:
Defined maturity		1,334,178			1,039,007
Undefined maturity		20,249,101			17,831,324
Total deposits		21,583,279			18,870,331
Trading liabilities	[4]	702,226			788,563
Short-term financial liabilities:
Federal funds purchased		538,284			520,992
Securities sold under agreements to repurchase		341,998			332,329
Other short-term borrowings		792,736			99,887
Total short-term financial liabilities		1,673,018			953,208
Term borrowings:
Real estate investment trust-preferred		0			0
Term borrowings - new market tax credit investment		0			0
Borrowings secured by residential real estate		0			0
Other long term borrowings		965,124			1,214,410
Total term borrowings		965,124			1,214,410
Derivative liabilities	[4]	127,365			120,234
Other noninterest-bearing liabilities:
Fixed income payables		68,897			95,346
Accrued interest payable		15,376			25,358
Total other noninterest-bearing liabilities		84,273			120,704
Total liabilities		25,135,285			22,067,450
Fair Value Inputs Level2 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level2 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level2 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level2 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level2 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		0			0
Fair Value Inputs Level3 [Member]
Short-term financial assets:
Securities available-for-sale		0			2,946
Other assets:
Total other assets		1,246			1,993
Fair Value Inputs Level3 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		19,159,049			16,209,602
Short-term financial assets:
Interest-bearing cash		0			0
Federal funds sold		0			0
Securities purchased under agreements to resell		0			0
Total short-term financial assets		0			0
Trading securities	[4]	2,784			4,603
Loans held-for-sale		108,534			124,308	[4]
Securities available-for-sale	[4]	161,357	[5]		158,659	[6]
Securities held-to-maturity		15,042			5,404
Derivative assets	[4]	0			0
Other assets:
Tax credit investments		89,879			58,030
Deferred compensation assets		0			0
Total other assets		89,879			58,030
Nonearning assets:
Cash and due from banks		0			0
Fixed income receivables		0			0
Accrued interest receivable		0			0
Total nonearning assets		0			0
Total assets		19,536,645			16,560,606
Deposits:
Defined maturity		0			0
Undefined maturity		0			0
Total deposits		0			0
Trading liabilities	[4]	0			0
Short-term financial liabilities:
Federal funds purchased		0			0
Securities sold under agreements to repurchase		0			0
Other short-term borrowings		0			0
Total short-term financial liabilities		0			0
Term borrowings:
Real estate investment trust-preferred		49,350			49,350
Term borrowings - new market tax credit investment		18,240			18,158
Borrowings secured by residential real estate		24,759			41,848
Other long term borrowings		0			0
Total term borrowings		92,349			109,356
Derivative liabilities	[4]	6,540			4,810
Other noninterest-bearing liabilities:
Fixed income payables		0			0
Accrued interest payable		0			0
Total other noninterest-bearing liabilities		0			0
Total liabilities		98,889			114,166
Fair Value Inputs Level3 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Financial And Industrial Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		11,937,281			9,473,702
Fair Value Inputs Level3 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Commercial Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		2,009,820			1,447,848
Fair Value Inputs Level3 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Consumer Real Estate Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		4,455,675			4,535,337
Fair Value Inputs Level3 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Permanent Mortgage Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		410,302			413,188
Fair Value Inputs Level3 [Member] | Estimate Of Fair Value Fair Value Disclosure [Member] | Credit Card And Other Portfolio Segment [Member]
Assets:
Total loans, net of unearned income and allowance for loan losses		345,971			339,527
FHLB-Cincinnati Stock [Member] | Fair Value Inputs Level3 [Member]
Other noninterest-bearing liabilities:
Restricted investments		87,900			87,900
FRB Stock [Member] | Fair Value Inputs Level3 [Member]
Other noninterest-bearing liabilities:
Restricted investments		$ 68,600			$ 65,800

[1] September 30 , 2016 and 2015 an d December 31, 2015 include $17.2 million , $ 21.7 million and $22.4 million, respectively, of held-for-sale consumer mortgage loans secured by residentia l real estate in process of foreclosure.

[2] Includes $ 3.3 billion of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes.

[3] Includes $ 2.9 billion of securities pledged to secure public deposits, securities sold under agreements to repu rchase, and for other purposes .

[4] Classes are detailed in the recurring and nonrecurring measurement tables.

[5] Level 3 includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 68.6 million .

[6] Level 3 includes restricted investments in FHLB-Cincinnati stock of $ 87.9 million and FRB stock of $ 65.8 million.